Visa delivers FQ2 beat on strength in International business; analysts positive

Visa (NYSE:) shares are up about 1% in pre-market Wednesday, following the company’s reported , with EPS of $2.09 coming in better than the consensus estimate of $1.99.

Revenue grew 11% year-over-year (13% on a constant-dollar basis) to $8 billion, beating the consensus of $7.8B, driven by growth in payments volume, cross-border volume, and processed transactions.

Total processed transactions grew 12% year-over-year to 50.1B. Payments volume increased 10% year-over-year on a constant-dollar basis.

Total cross-border volume increased 24% year-over-year, while cross-border volume excluding transactions within Europe, which is a measure of the company’s revenue from international transactions, increased 32% on a constant-dollar basis.

“Visa’s strong fiscal second quarter performance reflects continued focus on our growth levers – consumer payments, new flows and value added services,” said CEO Ryan McInerney.

Furthermore, the company declared a quarterly dividend of $0.45 per share, or $1.8 annualized, for an annual yield of 0.8%.

Oppenheimer analysts reiterated a Top Pick designation on V stock after earnings.

“V’s geographically and product diverse business, is showing its strength as international volume is better than expected and value added services keep transaction and service revenue yields beating our expectations. VAS now ~15.6% of total revenue in 2Q23 and still grew 20% YoY. Diversity matters, still top pick,” they said.

Goldman Sachs analysts said the results were “solid.”

“Visa put up a top and bottom line beat, with the top line strength largely driven by better yields on service fee revenue. With shares trading at ~22x our 2024 estimates, or roughly inline with historical averages, we believe valuation is attractive and remain Buy rated,” they wrote in a note.