Visa earnings above Wall Street expectations 📈

Visa (V.US) shares are gaining today before the open, the company have beaten analysts expectations. Profits and revenue were above expectations however, the number of transactions processed and their total value came in slightly below forecasts:

Revenue: $7.9 billion vs. $7.7 billion forecasts and $7.06 billion in Q4 2021 (12% y/y growth)

Earnings per share (EPS): $2.18 vs. $2.01 forecast and $1.83 in Q4 2021 (21% y/y increase)

Net profit: $4.19 billion vs. $3.96 billion in Q4 2021

Total value of transactions processed: $3.01 trillion vs. $3.16 trillion forecasts

Volume of reprocessed transactions: 52.5 billion vs. 52.9 billion forecasts

International transaction revenues: $2.87 billion (up 52% y/y)

Services revenue increased: $3.5 billion (up 10% y/y)

Data processing revenues: $3.8 billion (up 6% y/y)

• Looking globally according to Visa's commentary, consumers in Q4 2022 spent 46% more than in Q4 2019. Visa's payment volume increased by 10% y/y, the number of processed transactions increased by 12%. Cross-border payments increased by 22% (31% excluding Europe);
• CFO Vasant Prabhu believes that the consumer condition is healthy and very stable. The company does not intend to abandon investments although the CEO stressed that it has the tools to cut costs;
• The company intends to invest $1 billion in Africa over the next five years to support payment adoption on the continent;
• Visa's report supported an increase in cross-border travel in Q4, which was also pointed out by CEO Al Kelly, who is expected to step down in early February. According to Kell, the rebound in travel will take time although the relatively strong dollar has limited travel to the US, primarily from China;
• Now that China is opening up and the dollar is weakening this may change, but the process will take time and adjustment on the part of airlines. Visa expects more recovery in China in the second half of 2023;
• In Q4, the company repurchased 15.6 million of its own shares at an average price of about $198, for a total of $3.1 billion. 

Visa shares (V.US), W1 interval. The price is at the 23.6 Fibonacci retracement level. If the bulls manage to maintain the gains in today's session, the road to all-time high levels near $250 may be opened. Source: xStation5