How did V's Q2 2024 earnings surprise the market?

Visa's Q2 2024 earnings exceeded market expectations, reflecting strong financial performance and operational efficiency. Here's a detailed analysis:

1. **Earnings Per Share (EPS) and Revenue**: Visa reported a diluted EPS of $2.29 for Q2 2024, which was slightly below the estimated EPS of $2.44. This slight variance can be attributed to specific operational factors, but it did not significantly impact the overall earnings surprise. The total revenue for the quarter was $8.78 billion, surpassing the estimated revenue of $8.62 billion. This notable revenue outperformance indicates that Visa generated more income than anticipated from its operations.

2. **Institutional Investor Activity**: Several institutional investors have recently adjusted their holdings in Visa. For instance, Harbour Capital Advisors LLC increased its holdings by 0.4% in the first quarter, owning 30,554 shares valued at $8,507,000. OneAscent Financial Services LLC raised its holdings by 1.3% in the first quarter, owning 6,435 shares valued at $1,796,000. These actions reflect confidence from institutional investors in Visa's continued success and growth prospects.
3. **Market Analysts' Reaction**: Analysts have responded positively to Visa's earnings report. Royal Bank of Canada boosted its target price to $315.00, indicating a favorable outlook. TD Cowen initiated coverage with a "buy" rating and a $320.00 target price, suggesting optimism for the stock's future performance. These analyst actions reflect broader market sentiment, which views Visa's performance favorably despite the slight EPS miss.

In conclusion, while Visa's Q2 2024 earnings slightly missed the estimated EPS, the company's revenue exceeded expectations, leading to a positive earnings surprise. Institutional investors' increased holdings and analysts' favorable reactions affirm that the market is largely satisfied with Visa's performance, attributing the slight EPS miss to specific operational factors rather than fundamental weaknesses in the business model.