Visa Inc. (V) delivered a strong performance in its fourth quarter, surpassing analysts’ expectations on both earnings and revenue. The payments giant reported quarterly earnings of $2.71 per share, beating the consensus estimate of $2.58. Revenue for the quarter came in at $9.6 billion, also exceeding the analyst consensus of $9.49 billion. This growth was fueled by a robust year-over-year increase in payments volume, cross-border volume, and processed transactions.
Visa’s success can be attributed to several key factors. Payments volume for the three months ended June 30, 2024, grew by 7% year-over-year on a constant-dollar basis. This figure represents the volume on which fiscal fourth-quarter service revenue is recognized. Looking at the subsequent quarter, payments volume for the three months ended September 30, 2024, saw an even stronger increase, rising 8% year-over-year on a constant-dollar basis.
The company’s international operations also contributed significantly to its performance. Cross-border volume, excluding transactions within Europe, which drives Visa’s international transaction revenue, soared 13% on a constant-dollar basis for the quarter. Total cross-border volume on a constant-dollar basis also increased by 13% during the same period.
These positive results were reflected in Visa’s financial performance. Fiscal fourth-quarter service revenue reached $4.2 billion, marking an 8% increase year-over-year. Data processing revenue also saw robust growth, rising 8% to $4.6 billion. International transaction revenue climbed 9% year-over-year to $3.5 billion. Other revenue, which encompasses a range of services, experienced a substantial 30% increase to $969 million.
In a testament to its strong financial position, Visa’s board of directors increased the company’s quarterly cash dividend by 13% to 59 cents per share.
Investors reacted positively to these results, with Visa shares surging 1.85% in after-hours trading, reaching $287.10 at the time of publication on Tuesday. The market clearly recognized the strength of Visa’s performance and its ability to navigate the current economic environment. This positive response underscores the company’s continued leadership in the payments industry and its promising future prospects.
