Visa Fiscal Q3 Results Surpass Estimates; Street Says Buy

Digital payments company Visa, Inc. (V) reported better-than-expected results for the third quarter of Fiscal Year 2021. The company’s robust results were driven by the growth in its net revenues.

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Following the earnings, shares of the company declined approximately 1.1% to close at $248.25 in the extended trading session.

The company reported quarterly net revenues of $6.1 billion, up 27% from last year. It surpassed the consensus estimate of $5.8 billion. The rise in net revenues can be attributed primarily to the growth of 54% in international transaction revenues and 32% in data processing revenues.

It reported earnings per share (EPS) of $1.49, up 41% from last year, beating the consensus estimate of $1.34.

The CEO of Visa, Alfred F. Kelly, Jr., said, “Visa delivered another strong quarter as many key economies are well into a reopening-driven recovery. This was best demonstrated by credit and face-to-face spending bouncing back while debit and eCommerce volumes remained robust from accelerated cash digitization sparked by the pandemic. Additionally, cross-border travel spending improved as vaccination rates rose and more borders opened. Visa grew net revenues 27% and non-GAAP EPS 41% while continuing to make investments in strategies that will drive future growth.” (See Visa stock chart on TipRanks)

Recently, Goldman Sachs analyst Matthew O’Neill reiterated a Buy rating on the stock. The analyst, however, raised the price target from $262 to $264, which implies upside potential of 5.2% from current levels.

Consensus among analysts is a Strong Buy based on 20 Buys and 2 Holds. The average Visa price target of $272.75 implies upside potential of 8.7% from current levels.

Visa scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 27.5% over the past year.