We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Visa (V) Q4 Earnings Reflect Higher Payments' Volumes?
Read MoreHide Full Article
We expect to see an increase in payments volumes, a primary driver of service revenues for Visa Inc. (V - Free Report) . It is to be noted that service revenues are recognized on a lag basis. This means that the fourth quarter data will result in service revenues for the first quarter of fiscal 2019.
With economic conditions generally healthy in most of the world, Visa should see an increase in payments volumes, which should be driven by higher credit and debit payment volume. Total Payments Volumes in the fourth quarter is expected to be $2.14 trillion up 10.7% year over year.
Visa’ payments volumes comes from six regions — United States, Asia Pacific, Canada, CEMEA, Europe and LAC.
The United States, by far the largest of Visa’s six regions, has a Zacks Consensus Estimate of 10.2% increase in payment volume to $921 billion. Of that, $496 billion should be driven by credit cards, up 10.5%, and $425 billion by debit cards, reflecting a 9.5% increase. The growth in U.S. payments volumes should be primarily from increasing adoption of Visa Direct, the company’s near real-time payment service for debit cards.
Within Asia-Pacific, India should see growth as demonetization drive and move to a cashless society have led to volume growth for Visa. Business in Thailand should gain from the recent launch of Visa’s debit network in the region. Australia should see impressive payment volume growth from successful portfolio migration tied to significant long-term exclusive contracts struck with existing clients as well as the company’s continued growth momentum in both debit and contactless. The Zacks Consensus Estimate for payment volumes for Asia-Pacific is $485 billion, up 10% year over year.
In Europe, payments’ volumes should gain from the Visa Europe acquisitions completed a couple of years ago. Visa’s efforts to migrate debit business to higher-fee credit business in markets like Italy, Germany and the Nordic countries, should have driven payments volumes from these regions.
Visa carries a Zacks Rank #3 (Hold). Some stocks in the same space that are poised to beat earnings estimates in the July-September quarter are:
Discover Financial Services (DFS - Free Report) with an Earnings ESP of +0.23% and a Zacks Rank #2 (Buy). The company is expected to report third-quarter earnings results on Oct 25.
Cardtronics PLC having an Earnings ESP of +3.2% and a Zacks Rank #1. The company is expected to report third-quarter earnings results on Nov 1.
EVO Payments, Inc. with an Earnings ESP of +2.33% and a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 7.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Will Visa (V) Q4 Earnings Reflect Higher Payments' Volumes?
We expect to see an increase in payments volumes, a primary driver of service revenues for Visa Inc. (V - Free Report) . It is to be noted that service revenues are recognized on a lag basis. This means that the fourth quarter data will result in service revenues for the first quarter of fiscal 2019.
With economic conditions generally healthy in most of the world, Visa should see an increase in payments volumes, which should be driven by higher credit and debit payment volume. Total Payments Volumes in the fourth quarter is expected to be $2.14 trillion up 10.7% year over year.
Visa’ payments volumes comes from six regions — United States, Asia Pacific, Canada, CEMEA, Europe and LAC.
The United States, by far the largest of Visa’s six regions, has a Zacks Consensus Estimate of 10.2% increase in payment volume to $921 billion. Of that, $496 billion should be driven by credit cards, up 10.5%, and $425 billion by debit cards, reflecting a 9.5% increase. The growth in U.S. payments volumes should be primarily from increasing adoption of Visa Direct, the company’s near real-time payment service for debit cards.
Within Asia-Pacific, India should see growth as demonetization drive and move to a cashless society have led to volume growth for Visa. Business in Thailand should gain from the recent launch of Visa’s debit network in the region. Australia should see impressive payment volume growth from successful portfolio migration tied to significant long-term exclusive contracts struck with existing clients as well as the company’s continued growth momentum in both debit and contactless. The Zacks Consensus Estimate for payment volumes for Asia-Pacific is $485 billion, up 10% year over year.
In Europe, payments’ volumes should gain from the Visa Europe acquisitions completed a couple of years ago. Visa’s efforts to migrate debit business to higher-fee credit business in markets like Italy, Germany and the Nordic countries, should have driven payments volumes from these regions.
Other than payments volumes, processed transactions, cross-border volume, should aid revenue growth. (Read more: Will Higher Revenues Help Visa to Beat on Earnings in Q4?)
Visa carries a Zacks Rank #3 (Hold). Some stocks in the same space that are poised to beat earnings estimates in the July-September quarter are:
Discover Financial Services (DFS - Free Report) with an Earnings ESP of +0.23% and a Zacks Rank #2 (Buy). The company is expected to report third-quarter earnings results on Oct 25.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardtronics PLC having an Earnings ESP of +3.2% and a Zacks Rank #1. The company is expected to report third-quarter earnings results on Nov 1.
EVO Payments, Inc. with an Earnings ESP of +2.33% and a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 7.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>