Visa ends fiscal year 2023 with flying colors

Today, we are going to tell you about Visa, a company that's changing the way we do transactions.

Visa’s Fiscal Year 2023 Highlights

Visa has been on a tear lately. In its most recent quarter, the company's earnings per share (EPS) came in at $2.33, beating estimates of $1.93. Net revenue rose 11% to $8.61 billion, also beating analysts' forecasts.

For the entire fiscal year, Visa's net revenue hit $32.7 billion. Adjusted EPS was also impressive, up 17% to $8.77. The secret sauce? A strong recovery in cross-border travel transactions post-COVID and a boost from value-added services.

Revenge Travel, Dividends and Buybacks

Visa's resilience is even more impressive when you consider the challenging global economy. Payments volume surged by 9% for both the fourth quarter and the full fiscal year. Cross-border volume, a key metric, rose by 16% and 20%, respectively, fueled by the travel industry coming back to life.

And even with inflation, people are still spending money on travel. A Visa-conducted study found that "revenge travel" is alive and well, which means that Visa's cross-border transactions are likely to keep growing in the future.

Visa's revenue has been on a tear in recent years, from $21.85 billion in fiscal 2020 to $32.65 billion over the last 12 months. Earnings per share have also climbed from $4.89 to $8.77 over the same period.

Visa is also committed to returning value to shareholders. The company has a dividend yield of 0.72%, and it recently hiked its dividend by 16% to $0.52 per share. Visa also has a $25 billion multi-year share buyback program in place.

Visa is Investing in Tomorrow

Of course, Visa isn't without its challenges. Data security and privacy are always concerns in the digital age. But Visa is investing in innovation and strategic partnerships to stay ahead. The company recently invested $100 million in generative AI technologies, and it acquired a majority stake in Prosa, a company that helps businesses accept payments.

Analysts' Optimism
Analysts are bullish on Visa.Out of 21 analysts, 18 rate it a Buy, and three a Hold. The average stock price stands at $281.74, signaling an 8.4% upside potential.

Why Visa is a Stock to Watch

Visa has come a long way from its humble beginnings as a simple credit card program. Today, it's a global payments powerhouse. And with the digital payment market expanding and macroeconomic headwinds subsiding, Visa's future looks bright.
CEO Ryan McInerney says it best: "There is tremendous opportunity ahead, and I am as optimistic as ever about Visa’s role in the future of payments."

So, if you're looking for a stock that's poised to grow in the years to come, Visa is definitely worth considering.