Visa Likely to Report Higher Q1 Earnings; Most Accurate Analysts Revise Forecasts

Visa Inc. (V) is set to report its first-quarter earnings on Thursday, January 30, 2025, and analysts expect the global payments giant to deliver strong results. The consensus estimate for earnings per share (EPS) is $2.66, up 10.4% year over year, while revenue is projected to reach $9.34 billion, representing an 8.2% increase. The company has a history of beating EPS estimates, having done so in each of the last four quarters.

Analysts have been revising their EPS estimates for Visa over the past 30 days, with a downward revision of 0.3% leading to the current level. This indicates that covering analysts have collectively reconsidered their initial forecasts. Empirical research has shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. Therefore, investors should consider these changes when predicting the potential reactions of investors toward Visa's stock.



Analysts are focusing on specific Visa metrics to gauge the company's performance. Some key metrics and their estimated changes from the year-ago quarter include:

* Revenues - Service revenues: $4.23 billion, +8%
* Revenues - Data processing revenues: $4.79 billion, +10%
* Revenues - International transaction revenues: $3.39 billion, +12.2%
* Revenues - Other revenues: $829.74 million, +19.9%

These estimates suggest strong growth in various revenue streams compared to the year-ago quarter, indicating analysts' positive outlook on Visa's performance.



The consensus opinion on Visa stock is bullish, with an overall "Strong Buy" rating. Of the 36 analysts covering the stock, 27 advise a "Strong Buy" rating, three suggest a "Moderate Buy," and six indicate a "Hold." The average analyst price target is $335.51, indicating a potential upside of 6.5% from the current levels. This suggests that analysts expect Visa's stock price to increase in the near future, aligning with the bullish consensus opinion.

In conclusion, Visa is expected to report higher Q1 earnings, with analysts revising their forecasts ahead of the earnings call. The company's strong performance in key metrics and the bullish consensus opinion from analysts indicate a positive outlook for Visa's stock. Investors should consider these factors when making investment decisions regarding Visa.