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Visa Q2 Earnings: Still A No-Brainer Investment

Apr. 28, 2023 9:57 AM ETVisa Inc. (V)ADYEY, ADYYF, MA, PYPL14 Comments
Daan Rijnberk profile picture
Daan Rijnberk


  • Visa reported its Q2 earnings on April 25 and managed to report both revenue and EPS above the analyst consensus.
  • Management continues to solidify its position in the payments industry by reaching new agreements with leading financial institutions and FinTech companies, as well as introducing new products.
  • Visa is still seeing no real slowdown in payment volume growth and guides for another quarter of solid double-digit revenue and EPS growth.
  • With management focused on long-term growth and stability, an unchallenged moat, and looking to expand its offering into other verticals of the payments industry, Visa looks well positioned for impressive growth.

Sarajevo, Bosnia and Herzegovina - December 21, 2016: closeup pile of credit cards, Visa and MasterCard, credit, debit and electronic on ceramic surface background


Investment thesis

I maintain my buy rating on Visa Inc. (NYSE:V) and update my revenue and EPS estimates following the company’s 2Q23 results which came in above the Wall Street consensus for the 13th consecutive

This article was written by

Daan Rijnberk profile picture
Daan Rijnberk is an independent investor and author who focuses on finding businesses with a strong moat, healthy financials, and a promising growth outlook to deliver investors stable and above-average long-term profits. This includes a combination of both value and growth opportunities across industries to help readers build well-diversified portfolios. The articles aim not to make quick gains but to achieve long-term sustainable growth by identifying the most promising opportunities in the markets at a fair price. The leading strategy is to buy and hold for as long as the investment thesis is intact. Therefore, an update on most of the covered equities will be provided every 3-6 (In some cases 12) months to keep the rating and thesis up-to-date. Built upon professional experience and personal interests, Daan has specific expertise in semiconductors and fintech. Articles and analyses are published exclusively on Seeking Alpha.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of V either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (14)

No Guilt profile picture
Great write up

Long V
petethebeet profile picture
Dear author,

How do you figure the Chinese consumer is going to be a money maker for Visa?

Visa doesn’t have any business in China. Union Pay is the credit card in China. No visa.
Daan Rijnberk profile picture
@petethebeet Thanks for your comment. Should have provided a bit more explanation on this. From Visa management:
"Travel out of Mainland China is a key driver to watch. With airline capacity coming back fast and streamline's Visa issuance, Southeast Asia has been the biggest beneficiary of travel from Mainland China. This is beginning to change as airline capacity is added in other corridors, especially Europe and COVID-related requirements are eased. We expect the recovery of Asian, and in particular Chinese travel, to be a key driver of the final leg of the cross-border recovery."

Hope this helps!
Visa reported its Q2 earnings on April 25--isn't it Q1 earnings?
Daan Rijnberk profile picture
@Fresh from the boat Visa's fiscal years are slightly off. I should have clarified by adding "fiscal". This was Visa's fiscal 2Q23. Thanks for pointing it out.
Great company but stock has been rangebound going on almost 2 years.
Can't hold through $230 and corrects to low 200s.
WMAC profile picture
28 Apr. 2023
@adambryarton You could have done very well writing covered calls on that baby. Stock action is suggesting that this might be breakout tine.
@adambryarton Good. We can just keep accumulating.
Dividend Latitude profile picture
@adambryarton My guess is, this is "consolidation" of previous 3-year bull run up. Share price got ahead of the company performance, but the company continues to perform well and grow. @thisisit123 might be right - this is the time to accumulate, before the next bull run.

Or sell everything and run for the hills, IDK.
Thanks! Have owned for many years since the banks had to divest of it….will probably never sell. Toll booth.
Long term hold and enjoying the growth. I don’t have a lot but will wait for this market correction/ recession to add below 215 and then again below 200.
Daan Rijnberk profile picture
@jdnrm08 Good luck! Thanks for sharing.
Erman profile picture
@jdnrm08 That's back to the levels in 2012 for 200. Price to free cash flow ratio is about 27 at a price of 229 so a price of 200 will be at 23.5. I'm thinking if the price really craters to 180 or so...like it did in October. I'm loading up again
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