Visa Inc. ($V) Earnings (Q4 FY22)

 Visa Inc. ($V) Earnings and Opinion:


Visa is a company in the Financial Services sector and operates in the Credit Services industry. The company operates as a payments technology company worldwide. Visa was founded in 1958 and is currently headquartered in San Francisco, California. The company made its debut on the stock market in 2008. 

Visa Financial Results: 

  • Revenue of $7.79B beating expectations of $7.55B
  • Adj Operating Income of $5.16B beating expectations of $5B
  • Adj Diluted EPS of $1.93 beating expectations of $1.86
Opinion:
Visa is currently moving higher in the after hours market. The company reported earnings after the market closed this afternoon. Visa saw customers slowdown on spending during this quarter due to the increase of prices. The CFO came out and said that some uncertainty may exist in the short-term, but they are still confident in their long-term growth. It is hard to make a comparison with last years numbers, because it was when the vaccines came out and people started to get out more. This allowed numbers to be crazy high for Visa, so it isn't right for an investor to compare these numbers to last years burst in spending. As far as next years outlook goes, the company did not factor in a recession to its guidance, but said it will have an impact if one does occur. They are a global company and with some of the counties economies facing a lot of pressure, Visa has to be on high alert. The financials looked pretty solid, with cross-border volume dipping a little bit. Income and EPS were all healthy and the company looks to grow on it. As far as valuation goes, the company seems to be a little bit overvalued. The P/E ratio sits at 29.16, which is higher than the median of 25.40. The EV/EVITDA is at 21.30, which is way above the median of 11.31. In my opinion, Visa has changed a lot over the years. The company is doing a wonderful job with expansions and working with banks. The technology side of things is what is really helping this company stay established. They are facing some tough competition with smaller payment firms coming up with some innovative tech. They have held their own though, and will look to expand as a safer method than the smaller firms. I am long Visa, but do see a little bit of downside in the near term as everything gets situated globally.


*Information from Bloomberg and Yahoo Finance

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