Shares of credit card company Visa (NYSE:V) gained in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $2.51, which beat analysts’ consensus estimate of $2.44 per share. Sales increased by 10% year-over-year, with revenue hitting $8.8 billion. This beat analysts’ expectations of $8.625 billion.
In addition, there was an 8% rise in payment volume from the previous year when measured in constant currency. Excluding European transactions, the cross-border volume, a key driver of international revenue, surged 16% in constant currency. The total cross-border volume also saw a 16% uptick in the same period. Furthermore, the total transactions processed by Visa in this quarter amounted to 55.5 billion, an 11% annual growth.
Is Visa stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Visa stock based on 23 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 18.5% rally in its share price over the past year, the average Visa price target of $384 per share implies 13.24% upside potential.
Visa also pays out a quarterly dividend, which yields 0.71%. This is below the financial sector (XLF) average of 2.114%.
Is Visa the Right Stock to Buy for Passive Income?
Before you hurry to invest in Visa, think about the following:
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