Surprise, surprise: In a nation of credit card holders, Visa stock is doing just fine.Visa (V 3.37%) stock enjoyed modest gains on Wednesday, rising 3.5% through 1:30 p.m. ET after beating analyst forecasts for fiscal Q4 2024 earnings last night.Wall Street had Visa pegged for a $2.58 per share "adjusted" profit on sales of $9.5 billion. Visa reported $2.71 per share, adjusted, and $2.65 per share as calculated, according to generally accepted accounting principles (GAAP), with $9.6 billion in revenue, beat ...

Visa Inc. (V) reported fourth-quarter fiscal 2024 earnings of $2.71 per share, which outpaced the Zacks Consensus Estimate of $2.58 by 5%. The bottom line increased 16% year over year. Net revenues of $9.6 billion improved 12% year over year. The top line beat the consensus mark by 1.2%. The quarterly results were driven by increased payments volume, processed transactions and cross-border volumes, benefiting from expanding global operations and solid demand for digital payments. However, the upside was par ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Visa's fiscal fourth quarter results underscored the payment network's traction beyond card payments, as new payment flows in particular gained momentum. Commentary from the call and from the earnings supplement and earnings release show that overall payments volume grew 8% year over year. In the United States, payments volume grew 5%, and international payments volume grew 10%. Cross-border volume, excluding intra Europe, rose 13%. In consumer payments, CEO Ryan McInerney detailed that Visa's credential co ...

Financial Data and Key Metrics Changes - In Q4 2024, Visa reported net revenue of $9.6 billion, a 12% increase year-over-year, and EPS rose by 16% [6][38] - Overall payments volume grew by 8% year-over-year, with U.S. payments volume increasing by 5% and international payments volume by 10% [6][37] - Cross-border volume, excluding intra-Europe, increased by 13%, and processed transactions grew by 10% year-over-year [6][37] Business Line Data and Key Metrics Changes - Consumer payments saw a 7% increase in credentials, totaling over 4.6 billion, and 11.5 billion tokens were issued, with over 30% of transactions tokenized [9] - New flows revenue grew by 22% year-over-year, with Visa Direct transactions increasing by 38% to 2.8 billion [23] - Value-added services revenue rose by 22% in constant dollars, driven by strong growth in marketing services and consulting [31] Market Data and Key Metrics Changes - In the U.S., total payments volume grew by 5%, with credit and debit each also growing by 5% [39] - Internationally, payments volume increased by 10% in constant dollars, with Latin America up 24%, CEMEA up 19%, and Europe up 12% [40] - Asia Pacific payments volume saw marginal improvement but remained below 1% year-over-year growth, primarily due to macroeconomic conditions in Mainland China [40] Company Strategy and Development Direction - Visa is focused on expanding its consumer payments business through product design and innovation, as well as deepening relationships with clients through value-added services [7][8] - The company is targeting new flows and account-to-account payments, with plans to launch Visa A2A in the UK in 2025 [12][13] - Visa aims to exceed its goal of having new flows and value-added services represent more than 30% of net revenue by the end of 2024 [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the regulatory landscape and emphasized the importance of fair competition in the payments ecosystem [69] - The company anticipates continued strong growth in payments volume and processed transactions, with expectations for cross-border volumes to follow Q4 2024 trends [52][61] - Visa's underlying business remains healthy, with significant growth opportunities ahead [66] Other Important Information - Visa's acquisition of Featurespace is expected to enhance fraud prevention tools and improve overall security for clients [32][75] - The company plans to return excess free cash flow to shareholders through buybacks and has declared a 13% increase in its quarterly dividend [60] Q&A Session Summary Question: Thoughts on the regulatory and litigation environment in the U.S. - Management believes the lawsuit from the Department of Justice is meritless and is confident in their ability to manage through regulatory complexities [69] Question: Competitive environment regarding pay by bank - Management noted that account-to-account payments are not new and emphasized their capability to add value in this competitive space [71][72] Question: Growth expectations for commercial volumes - Management is optimistic about the growth of commercial volumes, expecting them to outpace consumer volumes over time [74] Question: Role of AI in the business model - Management sees AI as both a driver of value-added services and a competitive differentiator, particularly in fraud prevention [75][76] Question: Growth outlook for 2025 compared to 2024 - Management provided guidance based on assumptions about incentives, cross-border volumes, and macroeconomic conditions, indicating potential for strong revenue growth [82][84] Question: Opportunities from the CFPB's open banking rule - Management is evaluating the impacts of the new rules but remains optimistic about the opportunities for Visa in the open banking space [87][88] Question: Consistency in value-added services growth - Management highlighted the importance of planning and product development in driving consistent growth in value-added services [91][92]

Visa (V) reported $9.62 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 11.7%. EPS of $2.71 for the same period compares to $2.33 a year ago.The reported revenue represents a surprise of +1.17% over the Zacks Consensus Estimate of $9.51 billion. With the consensus EPS estimate being $2.58, the EPS surprise was +5.04%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Visa (V) came out with quarterly earnings of $2.71 per share, beating the Zacks Consensus Estimate of $2.58 per share. This compares to earnings of $2.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.04%. A quarter ago, it was expected that this global payments processor would post earnings of $2.41 per share when it actually produced earnings of $2.42, delivering a surprise of 0.41%. Over the last four quarters, the comp ...

Company Overview - Visa plans to lay off 1,400 employees and contractors by the end of the year, with approximately 1,000 of these cuts in technology positions [1] - The layoffs aim to streamline Visa's international business and will also affect roles in merchant sales and global digital partnerships, particularly those related to FinTech and technology companies [1] Employment Context - A Visa spokesperson indicated that the company is evolving to better serve clients and support growth, which may lead to the elimination of certain roles, but expects to hire more employees in the coming years [2] - Visa currently employs over 30,000 people worldwide [2] Industry Trends - The report coincides with Visa's fourth-quarter and full-year 2024 earnings call [3] - In 2023, major banks cut over 60,000 jobs, marking one of the worst years for job cuts in the banking sector since the 2007-2008 financial crisis [3] - The tech industry has also seen significant layoffs, with over 141,000 jobs cut across 479 companies as of the latest report [4]

Financial Performance - GAAP net income for Q4 2024 was $5.3 billion, a 14% increase YoY, with GAAP EPS at $2.65, up 17% YoY[1][2] - Net revenue for Q4 2024 was $9.6 billion, a 12% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[1][3] - GAAP net income for FY 2024 was $19.7 billion, a 14% increase YoY, with GAAP EPS at $9.73, up 17% YoY[11] - Net revenue for FY 2024 was $35.9 billion, a 10% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[12] - Visa's Q4 2024 net revenue increased by 12% YoY to $9.617 billion, with full-year net revenue reaching $35.926 billion, a 10% YoY increase[30] - Visa's Q4 2024 net income increased by 14% YoY to $5.318 billion, with full-year net income up 14% YoY to $19.743 billion[30] - Earnings per share for Q4 2024 grew by 17% YoY to $2.65, with full-year earnings per share up 17% YoY to $9.73[30] - Net revenue for the three months ended September 30, 2024, was $9.617 billion, a 11.7% increase from $8.609 billion in the same period in 2023[35] - Net income for the three months ended September 30, 2024, was $5.318 billion, a 13.6% increase from $4.681 billion in the same period in 2023[35] - Operating income for the three months ended September 30, 2024, was $6.349 billion, a 14.4% increase from $5.550 billion in the same period in 2023[35] - Visa's net income for the fiscal 2024 quarter ended September 30 was $5,318 million, compared to $4,681 million in the same quarter of fiscal 2023[37] Revenue Breakdown - Service revenue for Q4 2024 grew by 8% YoY to $4.199 billion, while full-year service revenue increased by 9% YoY to $16.114 billion[30] - Data processing revenue for Q4 2024 rose by 8% YoY to $4.610 billion, with full-year data processing revenue up 11% YoY to $17.714 billion[30] - International transaction revenue for Q4 2024 increased by 9% YoY to $3.468 billion, with full-year international transaction revenue up 9% YoY to $12.665 billion[30] - Other revenue for Q4 2024 surged by 30% YoY to $969 million, with full-year other revenue up 29% YoY to $3.197 billion[30] Transaction and Volume Metrics - Payments volume increased 8% YoY in Q4 2024, with cross-border volume excluding intra-Europe up 13% YoY[1][4] - Total processed transactions in Q4 2024 were 61.5 billion, a 10% increase YoY[5] - Total processed transactions for FY 2024 were 233.8 billion, a 10% increase YoY[13] - Payments volume for Q4 2024 increased by 8% YoY, with full-year payments volume up 8% YoY[31] - Cross-border volume excluding intra-Europe for Q4 2024 grew by 13% YoY, with full-year cross-border volume excluding intra-Europe up 15% YoY[31] - Processed transactions for Q4 2024 increased by 10% YoY, with full-year processed transactions up 10% YoY[31] Operating Expenses - GAAP operating expenses for Q4 2024 were $3.3 billion, a 7% increase YoY, primarily due to higher marketing and personnel expenses[7] - Total operating expenses for the three months ended September 30, 2024, were $3.268 billion, a 6.8% increase from $3.059 billion in the same period in 2023[35] - Total operating expenses for the fiscal 2024 quarter ended September 30 were $3,268 million, up from $3,059 million in the same quarter of fiscal 2023[37] - Operating expenses for the reported period were $3,059 million, with non-GAAP operating expenses at $2,883 million[47] - Operating expenses for the twelve months ended September 30, 2023, were $11,653 million, with non-GAAP operating expenses at $10,481 million[49] Share Repurchases and Dividends - Visa repurchased 22 million shares of class A common stock in Q4 2024 for $5.8 billion, with a total of 62 million shares repurchased in FY 2024 for $16.7 billion[22] - Repurchases of Class A common stock for the twelve months ended September 30, 2024, were $16.713 billion, a 38.1% increase from $12.101 billion in the same period in 2023[36] - Dividends paid for the twelve months ended September 30, 2024, were $4.217 billion, a 12.4% increase from $3.751 billion in the same period in 2023[36] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the twelve months ended September 30, 2024, was $19.950 billion, a 3.9% decrease from $20.755 billion in the same period in 2023[36] - Cash, cash equivalents, restricted cash, and restricted cash equivalents as of the end of the period for the twelve months ended September 30, 2024, were $19.763 billion, a 10.1% decrease from $21.990 billion in the same period in 2023[36] - Purchases of property, equipment, and technology for the twelve months ended September 30, 2024, were $1.257 billion, an 18.7% increase from $1.059 billion in the same period in 2023[36] - Acquisitions, net of cash and restricted cash acquired for the twelve months ended September 30, 2024, were $915 million, compared to $0 in the same period in 2023[36] Non-GAAP Financial Metrics - Visa's non-GAAP net income for the three months ended September 30, 2024 was $5,425 million, compared to $5,318 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the three months ended September 30, 2024 was $2.71, compared to $2.65 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the three months ended September 30, 2024 were $3,192 million, compared to $3,268 million on a GAAP basis[46] - Visa's non-GAAP net income for the twelve months ended September 30, 2024 was $20,389 million, compared to $19,743 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the twelve months ended September 30, 2024 was $10.05, compared to $9.73 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the twelve months ended September 30, 2024 were $11,609 million, compared to $12,331 million on a GAAP basis[46] - Visa's non-GAAP effective income tax rate for the twelve months ended September 30, 2024 was 17.6%, compared to 17.4% on a GAAP basis[46] - Visa's non-GAAP nonoperating income for the twelve months ended September 30, 2024 was $415 million, compared to $321 million on a GAAP basis[46] - Net income as reported was $4,681 million, with non-GAAP net income at $4,816 million[47] - Diluted earnings per share as reported were $2.27, with non-GAAP diluted earnings per share at $2.33[47] - Effective income tax rate as reported was 16.9%, with non-GAAP effective income tax rate at 17.0%[47] - Net income for the twelve months ended September 30, 2023, was $17,273 million, with non-GAAP net income at $18,280 million[49] - Diluted earnings per share for the twelve months ended September 30, 2023, were $8.28, with non-GAAP diluted earnings per share at $8.77[49] - Effective income tax rate for the twelve months ended September 30, 2023, was 17.9%, with non-GAAP effective income tax rate at 18.1%[49] Acquisitions - Visa announced the acquisition of Featurespace, a developer of real-time AI payments protection technology, expected to close in FY 2025[21]

Stablecoins are coming for Visa's cash cow.Visa (V 0.14%) has enjoyed an incredibly profitable position in the payments industry for decades, and it's benefited from the world's move toward digital payments. But Visa isn't the most efficient means of moving money around, and payment processors are starting to invest big in stablecoins to make the payments system more efficient. In this video, Travis Hoium shows why this is such a big deal to Visa today.*Stock prices used were end-of-day prices of Oct. 28, 2 ...