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.
Visa (V) Sees Growth in Nov US Payments, Cross-Border Volume
Read MoreHide Full Article
Visa Inc. (V - Free Report) recently reported encouraging transaction results for October and November (till 21 Nov), despite suspending operations in Russia in March. The financial transaction juggernaut witnessed 9% year-over-year growth in U.S. payments volume in November. The volume increased by 10% in October. Individuals gaining confidence in traveling will likely continue boosting its results.
Per the regulatory filing by Visa, global processed transactions jumped 10% in November and 11% in October, from the prior-year period. The volume was 140% of the 2019 level. Credit payments volume in the U.S. increased 10% in November, while debit payments rose 8%. In October, credit payments were up 12% and debit payments climbed 9%.
Total cross-border volume increased 19% year over year in November, following a 24% jump in October. Excluding intra-Europe transactions, cross-border volume rose 28% year over year in November and 36% in October. Travel cross-border volume growth in the Asia Pacific region is likely to buoy Visa’s performance. If this trend continues, the company is likely to register a significant year-over-year increase in volumes in the first quarter of fiscal 2023.
The price inflation is likely to keep benefiting Visa’s revenues. The ongoing recovery in travel and entertainment is expected to keep the volumes up. However, some factors can affect the figures. Even though the company has managed to continue growing, bypassing the ongoing turmoil, the growth rate is witnessing a declining trend. Fed rate hikes can trigger higher savings and lower spending levels. Macroeconomic volatility can also be a cause of concern.
Trend in Estimates
The Zacks Consensus Estimate for V’s current-quarter earnings is pegged at $2 per share, indicating a 10.5% rise from the year-ago reported figure. The stock has witnessed four upward estimate revisions in the past 30 days against five in the opposite direction. Visa beat on earnings in each of the last four quarters, the average being 8.3%.
The consensus mark for current-quarter revenues is pegged at $7.7 billion, indicating an 8.8% rise from the prior-year reported number.
Price Performance
Shares of Visa have increased 4.2% in the past year against the industry’s 15.7% decline.
Headquartered in Chicago, OppFi operates a financial technology platform facilitating lending products’ sales. The Zacks Consensus Estimate for OPFI’s 2022 bottom line has increased 100% in the past 30 days.
Based in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’ 2022 earnings indicates a 340% year-over-year surge.
Morehead, KY-based AppHarvest works as an applied agricultural technology firm. The Zacks Consensus Estimate for APPH’s 2022 bottom line indicates a 13.9% year-over-year improvement.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa (V) Sees Growth in Nov US Payments, Cross-Border Volume
Visa Inc. (V - Free Report) recently reported encouraging transaction results for October and November (till 21 Nov), despite suspending operations in Russia in March. The financial transaction juggernaut witnessed 9% year-over-year growth in U.S. payments volume in November. The volume increased by 10% in October. Individuals gaining confidence in traveling will likely continue boosting its results.
Per the regulatory filing by Visa, global processed transactions jumped 10% in November and 11% in October, from the prior-year period. The volume was 140% of the 2019 level. Credit payments volume in the U.S. increased 10% in November, while debit payments rose 8%. In October, credit payments were up 12% and debit payments climbed 9%.
Total cross-border volume increased 19% year over year in November, following a 24% jump in October. Excluding intra-Europe transactions, cross-border volume rose 28% year over year in November and 36% in October. Travel cross-border volume growth in the Asia Pacific region is likely to buoy Visa’s performance. If this trend continues, the company is likely to register a significant year-over-year increase in volumes in the first quarter of fiscal 2023.
The price inflation is likely to keep benefiting Visa’s revenues. The ongoing recovery in travel and entertainment is expected to keep the volumes up. However, some factors can affect the figures. Even though the company has managed to continue growing, bypassing the ongoing turmoil, the growth rate is witnessing a declining trend. Fed rate hikes can trigger higher savings and lower spending levels. Macroeconomic volatility can also be a cause of concern.
Trend in Estimates
The Zacks Consensus Estimate for V’s current-quarter earnings is pegged at $2 per share, indicating a 10.5% rise from the year-ago reported figure. The stock has witnessed four upward estimate revisions in the past 30 days against five in the opposite direction. Visa beat on earnings in each of the last four quarters, the average being 8.3%.
The consensus mark for current-quarter revenues is pegged at $7.7 billion, indicating an 8.8% rise from the prior-year reported number.
Price Performance
Shares of Visa have increased 4.2% in the past year against the industry’s 15.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Visa currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are OppFi Inc. (OPFI - Free Report) , PaySign, Inc. (PAYS - Free Report) and AppHarvest, Inc. . While OppFi sports a Zacks Rank #1 (Strong Buy), PaySign and AppHarvest carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Chicago, OppFi operates a financial technology platform facilitating lending products’ sales. The Zacks Consensus Estimate for OPFI’s 2022 bottom line has increased 100% in the past 30 days.
Based in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’ 2022 earnings indicates a 340% year-over-year surge.
Morehead, KY-based AppHarvest works as an applied agricultural technology firm. The Zacks Consensus Estimate for APPH’s 2022 bottom line indicates a 13.9% year-over-year improvement.