Shares of Visa (NYSE: V) surged 10.6% on Friday after the digital payments giant delivered impressive fiscal 2022 first-quarter earnings results. So what Visa's revenue jumped 24% year over year to $7.1 billion. The gains were fueled by sustained growth in e-commerce and a surprisingly fast rebound in travel-related spending.
Why earnings season could be great for Visa (V)?
Visa (V) Q1 2022 Earnings Call Transcript
- Contents:
- Prepared Remarks: Welcome to Visa's fiscal first quarter 2022 earnings conference call. All participants are in a listen-only mode until the question-and-answer session.
- Questions & Answers: [Operator instructions] Our first question comes from Darrin Peller from Wolfe Research. Your line is open.
Is Visa stock a Buy Right Now?
Visa Inc.’s new Atlanta office is full of opportunities for Elizabeth Rector, senior vice president for global client services. It’s a chance to double down on Visa’s commitment to diversity and inclusion, be closer to major customers, innovate a ...
Why did my stock stop trading?
Why Does a Stock Not Trade for a Day?
- Trading Halt. A company may request that the exchange where its stock is listed halt trading. ...
- Trading Halt Examples. A small biotech company may be expecting a major decision from the U.S. ...
- No Stock for Sale. Some thinly traded stocks are mostly owned by insiders and do not trade much. ...
- Limit Orders. ...
Why will stocks keep going up?
Reasons that stocks are still rising First, there has been no shortage of bad news about the coronavirus. The market's willingness to ignore the economic fallout can be traced to another dose of...
Is Visa stock expected to rise?
The 32 analysts offering 12-month price forecasts for Visa Inc have a median target of 270.00, with a high estimate of 310.00 and a low estimate of 225.00. The median estimate represents a +26.87% increase from the last price of 212.81.
Is Visa a good stock to buy 2022?
Overall, Visa revenues are expected to touch $28.8 billion in FY2022. Additionally, Visa's adjusted net income margin is likely to see a slight increase in the year. It will likely result in an adjusted net income of $15.2 billion and an annual EPS of $7.10.
Why is Visa a good investment?
The company has better than a 50% net margin on sales and generates substantial free cash flow, which it returns in large part to shareholders in dividends and stock repurchases. Visa favors buybacks over dividends. It pays a $1.50 annual dividend, which provides a yield of 0.7% at the current stock price.
Is Visa stock a buy sell or hold?
Visa has received a consensus rating of Buy. The company's average rating score is 2.79, and is based on 19 buy ratings, 5 hold ratings, and no sell ratings.
Is Visa a Strong buy?
Visa is a high-quality company enjoying strong business economics. Strong barriers to entry protect Visa from potential threats. Recent earnings suggest a faster than expected recovery in cross-border transactions and a strong underlying business.
Is Visa overvalued?
Visa is a high-quality company that is undervalued under current market conditions.
Does Warren Buffett own Visa stock?
Warren Buffett's Berkshire Hathaway has sold a combined $3.1 billion worth of shares in Visa and Mastercard and bought a $1 billion stake in Brazilian digital lender Nubank. In SEC filings, Berkshire Hathaway reveals that is has sold Visa shares worth $1.8 billion and Mastercard shares worth $1.3 billion.
Is Visa stock safe?
Since it generally mirrors the state of the economy, which an overwhelming amount of the time expands rather than contracts, Visa is great long-term stock to own. Its top position makes it hard to compete with, and it can provide security and stability to a balanced portfolio.
Is it good to buy Visa shares?
Stacked up against its potential for high-teens percentage annual earnings growth, this is a reasonable valuation for a stock of Visa's quality. The 0.7% dividend yield is also a bit higher than its 0.6% 13-year median yield, which also supports the idea that Visa is a solid buy right now.
What will Visa stock be worth in 5 years?
Based on our forecasts, a long-term increase is expected, the "V" stock price prognosis for 2027-05-26 is 320.250 USD. With a 5-year investment, the revenue is expected to be around +50.94%. Your current $100 investment may be up to $150.94 in 2027.
Does Visa pay a dividend?
Visa (NYSE:V) pays quarterly dividends to shareholders.
Is Mastercard a buy or sell?
Mastercard has received a consensus rating of Buy. The company's average rating score is 2.81, and is based on 14 buy ratings, 1 hold rating, and 1 sell rating.
Is Visa a buy right now?
24 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Visa in the last twelve months. There are currently 5 h...
When is Visa's next earnings date?
Visa is scheduled to release its next quarterly earnings announcement on Tuesday, July 26th 2022. View our earnings forecast for Visa .
How were Visa's earnings last quarter?
Visa Inc. (NYSE:V) announced its earnings results on Tuesday, April, 26th. The credit-card processor reported $1.79 earnings per share (EPS) for th...
How often does Visa pay dividends? What is the dividend yield for Visa?
Visa declared a quarterly dividend on Thursday, April 28th. Shareholders of record on Friday, May 13th will be given a dividend of $0.375 per share...
Is Visa a good dividend stock?
Visa pays an annual dividend of $1.50 per share and currently has a dividend yield of 0.70%. Visa has been increasing its dividend for 14 consecuti...
When did Visa's stock split? How did Visa's stock split work?
Visa's stock split on the morning of Thursday, March 19th 2015. The 4-1 split was announced on Thursday, January 29th 2015. The newly minted shares...
What price target have analysts set for V?
24 brokerages have issued 12 month target prices for Visa's shares. Their forecasts range from $210.00 to $310.00. On average, they anticipate Visa...
Who are Visa's key executives?
Visa's management team includes the following people: Mr. Alfred Francis Kelly Jr. , Chairman & CEO (Age 64, Pay $8.14M) Mr. Ryan M. McInerney ,...
What is Alfred F. Kelly, Jr.'s approval rating as Visa's CEO?
738 employees have rated Visa CEO Alfred F. Kelly, Jr. on Glassdoor.com . Alfred F. Kelly, Jr. has an approval rating of 94% among Visa's employee...
Even good news can be bad news for Visa, it seems
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
For the fourth day in a row, shares of credit card giant Visa ( NYSE:V) continued to decline on Monday, hitting a 3% loss as of 1:20 p.m. ET.
So what
On Friday, you see, the Japanese banker downgraded shares of Visa stock from buy to neutral, and slashed its price target on Visa 14% to $220 a share, according to TipRanks.com.
Now what
But wait! What exactly is this "cash-to-card conversion runway" that Mizuho speaks of?
What happened
Shares of Visa (NYSE: V) surged 10.6% on Friday after the digital payments giant delivered impressive fiscal 2022 first-quarter earnings results.
So what
Visa's revenue jumped 24% year over year to $7.1 billion. The gains were fueled by sustained growth in e-commerce and a surprisingly fast rebound in travel-related spending.
Now what
Debit and credit card usage is accelerating in key international markets, including Latin America. Yet, despite this rapid expansion, Visa sees many years of growth still to come for the digital payments industry.
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How much money does Visa spend?
According to its most recent annual report, Visa expects to move $17 trillion in consumer spending and $15 trillion-$20 trillion of business spending to cards and digital formats. Currently, much of that spending is still done in cash and checks.
How many users does WhatsApp have in Brazil?
The messaging service has 120 million users in the largest country in South America. Brazil's central bank authorized payments via WhatsApp chat in July, after briefly suspending the newly launched service and ordering Visa and Mastercard to halt such payments.
Does Visa issue credit cards?
Visa and Mastercard, with China's UnionPay, operate the world's biggest electronic payment networks. Mastercard and Visa process card transactions but don't issue credit cards. Also, Visa and Mastercard have less exposure to interest-rate risk.
Visa stock: Technical analysis
The stock reached an all-time high of $250.93 on 27 July 2021, before plunging down to $190 at the start of December 2021. At the time of writing (16 February 2022), Visa’s share price sits at around $228.
Results beat expectations but share price wobbles
Visa reported full-year results for 2021 on 26 October. Transactions for Q4 2021 were up 21% on the prior-year quarter, and payments volumes saw a 17% increase over the same period.
Plastic power
The final quarter of 2021 saw Visa report record global payments of $2.8trn as the pandemic accelerated cashless payments. But can this growth continue as the pandemic recedes?
Transaction costs
Visa’s business model means that it stands to make significant gains from growing cashless payments
Fintech partnerships
Visa could also be well placed to navigate fintech disruption in the payments market: Q4 2021 saw Swedish fintech company Klarna sign a global brand deal with Visa to accelerate expansion into new markets.
Storm clouds on the horizon?
But Visa’s growth in the short term hinges on transaction volumes, and these could be hit as consumers feel the pinch from rising inflation and the spread of Omicron.
Could Omicron pose risks?
The spread of Omicron also has the potential to affect Visa’s stock market performance. While higher case rates and ensuing restrictions may encourage customers to spend online, they could also see consumers delaying spending and postponing travel.
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Executive Profile: Elizabeth Rector leads Visa's Atlanta office
Visa's Atlanta office is set to employ 1,000 people in the next three years. Office lead Elizabeth Rector calls it “the workplace of the future.”
Zacks Value Trader Highlights: Mastercard, Visa, Chevron and AbbVie
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What happened
Shares of credit card companies Mastercard ( MA -1.00% ) and Visa ( V -0.85% ) -- ordinarily the fiercest of rivals -- are joining hands and running up the stairs together today, with Mastercard climbing 4.1% higher and Visa up 3.2% as of 2:55 p.m. EST.
So what
As The Wall Street Journal reports, both companies plan to hike their swipe fees -- the percentage merchants pay them on every transaction made using one of their cards -- as early as April 2021.
NYSE: V
That's important, because as the WSJ points out, "swipe fees ... are often higher on online purchases" already. (The credit card companies point out that they plan to lower fees on other purchases -- but mainly just "certain low-price transactions.")
Now what
So how big of a deal is this for Mastercard and Visa shareholders? That's hard to say without knowing exactly what transactions will be affected and how big of an increase in fees we're talking about here.
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