Global payments technology company Visa (NYSE:V) will release its Q1 Fiscal 2024 earnings on January 25. Visa’s management expects its business to remain resilient amid macro challenges and projects its first quarter adjusted net revenue growth in the mid-to-high single-digit range. Moreover, Visa’s top-line growth rate is expected to improve as the year progresses.
With this backdrop, let’s look at the Street’s forecast for Visa.
Visa – Q1 Expectations
Wall Street expects Visa to post revenue of $8.56 billion, up about 7.8% year-over-year. Growth in cross-border volume, processed transactions, and payment volume will likely fuel the expected year-over-year improvement in Visa’s top line. However, tough year-over-year comparisons could remain a drag.
Higher revenues will likely support its bottom-line growth. Analysts project Visa’s earnings to show year-over-year and sequential improvement in Q1. Wall Street expects Visa to report earnings of $2.34 per share in Q1, up from $2.18 in the prior-year quarter.
What is the Prediction for Visa Stock?
Wall Street analysts are bullish about Visa stock ahead of Q1 earnings. It has 17 Buy and two Hold recommendations for a Strong Buy consensus rating.
Visa stock has gained over 22% in one year, slightly beating the S&P 500’s (SPX) gain of about 21%. Analysts’ average price target of $289.56 implies 6.75% upside potential from current levels.
Insights from Options Trading Activity
While analysts are bullish about Visa stock, options traders are pricing in a +/- 2.89% move on earnings, higher than the previous quarter’s earnings-related move of 0.94%.
The expected move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Bottom Line
Visa’s underlying business continues to be healthy and stable. Meanwhile, the reduction in interest rates and improved cross-border volume, processed transactions, and payment volume will likely support its top and bottom-line growth. The resilience of Visa’s business and its focus on enhancing shareholders’ value through share buybacks and higher dividend payments act as catalysts and keep analysts bullish about its prospects.
