Visa beats Q4 expectations, shares rise on strong revenue growth

Visa (NYSE:V)reported fourth-quarter earnings that surpassed analyst estimates, driven by robust revenue growth across its business segments. The company's shares rose 2% in after-hours trading following the announcement.

The global payments technology company reported adjusted earnings per share (EPS) of $2.71 for the quarter ended September 30, 2024, beating the analyst consensus of $2.58. Revenue for the quarter came in at $9.6 billion, exceeding the expected $9.49 billion and representing a 12% increase YoY on both a nominal and constant-dollar basis.

Visa's strong performance was underpinned by stable growth in key metrics. Payments volume for the three months ended September 30, 2024, increased 8% YoY on a constant-dollar basis. Cross-border volume, excluding transactions within Europe, rose 13% on a constant-dollar basis. Total processed transactions reached 61.5 billion, a 10% increase over the prior year.

Ryan McInerney, Chief Executive Officer of Visa, commented on the results: "Visa had a robust fourth quarter to finish a very strong fiscal year. In the fourth quarter, net revenue and GAAP EPS grew by 12% and 17%, respectively, driven by relatively stable growth in payments volume, cross-border volume and processed transactions plus strong momentum across new flows and value added services."

The company's board of directors approved a 13% increase in Visa's quarterly cash dividend to $0.590 per share, reflecting confidence in the company's financial position and future prospects.

For the full fiscal year 2024, Visa reported net revenue of $35.9 billion, a 10% increase on both a nominal and constant-dollar basis. The company's GAAP net income for the year was $19.7 billion, or $9.73 per share, while non-GAAP net income reached $20.4 billion, or $10.05 per share.