Shares of Visa (NYSE:V) are up more than 5% in premarket trading Wednesday after the company reported Q2 adjusted EPS that topped consensus estimates.
Visa reported Q2 adjusted EPS of $1.79, up from $1.38 in the year-ago period and above the analyst consensus of $1.65 per share. Net revenue came in at $7.2 billion, up 26% YoY and above the estimated $6.83 billion.
Visa reported $2.78 trillion in payment volume, in line with the analyst estimates. The company reported $44.8 billion in total Visa processed transactions, up 19% YoY, beating the analyst consensus of $44.05 billion.
The financial services provider expects continued growth in spite of intensifying geopolitical tensions, driven by strong travel recovery and the enablement of traditional and modern methods to pay globally.
The financial report also included $127 million of net losses from equity investments, $40 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs, and $60 million in charges from the Russia-Ukraine situation.
Morgan Stanley analyst James Faucette raised the price target to $284.00 per share from $279.00.
“Rapid travel recovery and still limited impact from inflation/supply chain issues drives EPS ests 2% higher in '22/'23. Stay OW and PT to $284 though investors may need time to gain confidence the recovery can stay on track,” Faucette said in a client note.
Bank of America analyst Jason Kupferberg says there’s “lots to like in FQ2 print.”
“Despite somewhat elevated expectations heading into the print, we believe the magnitude of V’s beat will be enough to move the shares higher tomorrow,” Kupferberg wrote to clients.
By Senad Karaahmetovic