Visa Reports Strong Earnings Growth but Falls Short on Sales Projections in Q3

Visa, Inc. reported its third-quarter earnings on Tuesday, revealing results that disappointed in terms of sales projections. While the company achieved quarterly earnings of $2.42 per share, which aligned with analyst forecasts, its total sales amounted to $8.9 billion. This figure fell slightly short of the consensus estimate of $8.92 billion, missing by about 0.18%. However, when compared to the same quarter last year, Visa showed a notable growth, increasing its sales from $8.12 billion, which is a rise of 9.57%.

Despite the sales miss, the company did report significant growth in various areas of its operations. Payment volume was up by 7%, cross-border transactions increased by 14%, and overall processed transactions rose by 10% during the quarter. Ryan McInerney, Visa’s CEO, commented on the company’s performance, stating, “Visa delivered strong results in the third quarter, with net revenue growth of 10%, GAAP EPS growth of 20%, and non-GAAP EPS growth of 12%.” He also highlighted that the company expanded its partnerships globally and introduced new innovations aimed at enhancing commerce in the future.

Following the earnings report, Visa shares saw a decline of 1.1%, closing at $264.79. As a reaction to these results, analysts adjusted their price targets for the company. Although the earnings met expectations, the dip in sales projections has led to a mixed sentiment about Visa’s performance moving forward. Overall, analysts remain somewhat bullish on the company’s future given its growth in transactions and revenue.