Visa Inc. is anticipated to report a 13% increase in quarterly earnings, driven by substantial growth in transactions, payment volume, and data processing revenue. Analysts project that the credit card company’s revenue likely rose 9% to 12% in each of its three primary business segments during the fiscal first quarter.
The company is expected to reveal a fiscal first-quarter profit of $4.7 billion, or $2.31 per share, marking an increase from $4.2 billion, or $1.99 per share, in the same period the previous year. Visa’s operating revenue is also estimated to climb 8% to $8.5 billion.
Visible Alpha’s estimates indicate anticipated gains of 12%, 11%, and 9% in the company’s data processing, service, and international transaction revenue, respectively. This growth is attributed to an expected 10% increase in payment volume to $3.3 trillion, with an estimated 57.6 billion transactions processed, up 5.1 billion from the same period a year ago.
Visa’s performance has been bolstered by resilient consumer spending over the past year, with December’s retail sales up 0.6% from November and 5.6% higher than the previous year. Despite a slowdown in credit card debt growth, Visa’s shares have seen a 20% increase in the past year and a 13% rise in the past three months.
