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Visa (V) Q4 Earnings and Revenues Top Estimates, Rise Y/Y

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Visa Inc. V reported fourth-quarter fiscal 2021 earnings of $1.62 per share, which outpaced the Zacks Consensus Estimate by 5.88%. The bottom line improved 45% year over year.

Net revenues rose 29% year over year to $6.6 billion in the quarter under review. The top line beat the consensus mark by 1.2%.

Results were aided by solid growth in payments volume, processed transactions and cross-border volume, partly offset by elevated operating costs.

Visa Inc. Price, Consensus and EPS Surprise

Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote

Visa Inc. Price, Consensus and EPS Surprise
Visa Inc. Price, Consensus and EPS Surprise

Financial Performance

Payments volume of Visa climbed 17% year over year in the third quarter. The company’s processed transactions grew 21% year over year to 45.3 billion, courtesy of domestic transactions.

Total cross-border volume improved 38% year over year in the quarter. Its cross-border volume excluding transactions within Europe usually bolsters the company’s international transaction revenues.

Service revenues surged 41% year over year to $3.1 billion, driven by an improved payments volume recorded in the prior quarter. While data processing revenues climbed 20% from the prior-year quarter to $3.4 billion, international transaction revenues of $1.79 billion soared 41% year over year. Other revenues grew 36% year over year to $490 million.

Client incentives increased 40% year over year to $2.4 billion in the quarter under review.

Operating expenses of $2.2 billion escalated 15% year over year due to rise in marketing, personnel and professional fees.
Interest expense declined 13.8% year over year to $125 million in the quarter.

Balance Sheet (as of Sep 30, 2021)

Visa exited the quarter with cash and cash equivalents of $16.5 billion, which increased 1.2% from the level at the fiscal-year end on Sep 30, 2020.
Total assets were $82.9 billion, up 2.4% from the fiscal-year end level as of Sep 30, 2020.

Long-term debt decreased 5.2% to $20 billion from the fiscal-year end reading on Sep 30, 2020.

Share Buyback and Dividend Update

In the quarter under review, the company bought back shares worth $3.1 billion.

The board of directors increased Visa's quarterly cash dividend by 17% to 37.5 cents per share

Zacks Rank

Visa presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Other Business Services Sector Releases

Some other companies in the business services space that already released results are Equifax Inc. EFX, American Express Co. AXP and Discover Financial Services DFS, which beat earnings estimates by 7.6%, 27.53% and 3.51%, respectively.

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Visa Inc. (V) : Free Stock Analysis Report

Discover Financial Services (DFS) : Free Stock Analysis Report

American Express Company (AXP) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

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