Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Visa (V), and highlights the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][4]. Summary by Sections Brokerage Recommendations - Visa has an average brokerage recommendation (ABR) of 1.41, indicating a consensus between Strong Buy and Buy, based on 37 brokerage firms' recommendations [2]. - Out of the 37 recommendations, 28 are classified as Strong Buy, accounting for 75.7%, while 3 are classified as Buy, making up 8.1% of the total [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies suggest they often fail to guide investors effectively towards stocks with high price appreciation potential [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance, driven by earnings estimate revisions [7][10]. - The Zacks Rank is updated more frequently than the ABR, reflecting timely changes in analysts' earnings estimates, which are correlated with stock price movements [11]. Current Earnings Estimates for Visa - The Zacks Consensus Estimate for Visa's earnings has increased by 0.4% over the past month to $11.27, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The recent changes in consensus estimates have resulted in a Zacks Rank of 2 (Buy) for Visa, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [13].

Core Insights - Visa Inc. reported quarterly earnings of $2.75 per share, exceeding the analyst consensus estimate of $2.66, with quarterly revenue of $9.51 billion, surpassing the estimate of $9.34 billion [1] - Total cross-border volume on a constant dollar basis increased by 16% in the quarter [1] - Analysts have mixed ratings on Visa, with some maintaining a Neutral rating due to concerns over top-line growth and potential litigation/regulatory risks, while others are optimistic about the company's future performance [1][2][3] Analyst Perspectives - BofA Securities noted that Visa's EPS growth guidance is influenced by first-quarter performance and an updated tax rate assumption, maintaining a Neutral rating [1] - RBC Capital Markets attributed the strong quarter to solid holiday spending, elevated FX volatility, and strong cross-border travel, setting a positive backdrop for Visa [2] - Goldman Sachs projected that Visa's strong first-quarter results would support the stock, citing accelerated volumes and raised guidance [2] - Oppenheimer expressed optimism about Visa's position in the payments sector, highlighting the shift from paper-based payments to cards [3] - Keefe, Bruyette & Woods noted ongoing volume acceleration in discretionary spending categories and potential upside as the year progresses [4] Price Forecasts - BofA Securities raised its price forecast for Visa to $363 from $331 while maintaining a Neutral rating [6] - RBC Capital Markets increased its price forecast to $395 from $322, reiterating an Outperform rating [6] - Goldman Sachs raised its price forecast to $384 from $346 while maintaining a Buy rating [6] - Oppenheimer increased its price forecast to $390 from $375, reiterating an Outperform rating [6] - Keefe, Bruyette & Woods raised its price forecast to $400 from $360, maintaining an Outperform rating [6]

Core Insights - Visa Inc. reported first-quarter fiscal 2025 earnings per share (EPS) of $2.75, exceeding the Zacks Consensus Estimate of $2.66 by 3.4% and reflecting a 14% year-over-year increase [1] - Net revenues reached $9.5 billion, a 10% year-over-year improvement, surpassing the consensus mark by 1.8% [2] Financial Performance - Visa's payments volume increased by 9% year over year on a constant-dollar basis, driven by growth across various regions including Canada, the United States, Asia Pacific, Europe, CEMEA, and LAC [3] - Processed transactions grew 11% year over year to 63.8 billion, exceeding both the Zacks Consensus Estimate and internal estimates [3] - Cross-border volume rose 16% year over year on a constant-dollar basis, with similar growth excluding European transactions [4] Revenue Breakdown - Service revenues increased 8% year over year to $4.2 billion, although it fell short of the consensus estimate [5] - Data processing revenues grew 9% year over year to $4.75 billion, but also missed the consensus mark [5] - International transaction revenues rose 14% year over year to $3.44 billion, exceeding the consensus estimate [6] - Other revenues reached $912 million, a 32% year-over-year increase, surpassing internal estimates [6] Expenses and Incentives - Client incentives increased 13% year over year to $3.8 billion, accounting for 28.5% of gross revenues, but were lower than the consensus estimate [7] - Adjusted operating expenses rose 11% year over year to $2.92 billion, driven by higher general, administrative, and personnel costs [7] - Interest expenses decreased by 2.7% year over year to $182 million [7] Balance Sheet and Cash Flow - As of December 31, 2024, Visa had cash and cash equivalents of $12.4 billion, a 3.3% increase from the previous fiscal year-end [8] - Total assets decreased by 2.8% to $91.9 billion, while long-term debt declined by 19.9% to $16.7 billion [8] - The company generated net cash from operations of $5.4 billion, a 49.3% year-over-year increase, with free cash flows at $5.1 billion, up 50.9% year over year [10] Capital Deployment - Visa returned $5.1 billion to shareholders through share buybacks and dividends in the December quarter, with $9.1 billion remaining under its repurchase program [11] - A quarterly cash dividend of 59 cents per share is scheduled for payment on March 3, 2025 [11] Future Outlook - For fiscal 2025, management anticipates low-double-digit growth in net revenues on an adjusted constant-dollar basis, with operating expenses expected to grow in the high single-digit to low double-digit range [13] - EPS is projected to grow in the low teens [13]

Group 1 - The company PropNotes specializes in identifying high-yield investment opportunities for individual investors [1] - PropNotes leverages a background in professional Prop Trading to simplify complex investment concepts and provide actionable advice [1] - The analysis produced by PropNotes aims to assist investors in making informed market decisions, supported by unique expert research [1] Group 2 - The article does not contain any specific stock or investment recommendations [2][3] - There is no indication of any business relationships with companies mentioned in the article [2]

Core Insights - Visa's fiscal first-quarter results indicate significant growth in digital payments, with a payments volume of approximately $4 trillion, driven by a shift to digital payments that now account for over 60% of total volume [2][6] - The company reported a 9% increase in payments volume, with U.S. payments up 7% and cross-border volume up 11% [1][6] - Visa has issued 4.7 billion credentials (7% YOY growth) and 12.6 billion tokens (44% YOY growth), highlighting the importance of tokenization in enhancing transaction approval rates and reducing fraud [3][4] Payments Volume and Trends - Payments volume growth was driven by an 8% increase in debit volumes and a 7% increase in credit volumes within the U.S., while cross-border volumes increased by 15% in constant dollar terms [1][6] - The CEO noted that eCommerce transactions using tokenized methods have a 6 percentage point higher approval rate, leading to increased sales for merchants and a 30% reduction in fraud rates [4] Contactless Payments - 74% of face-to-face transactions are now contactless, with notable growth in markets like Japan and Argentina; in the U.S., tap-to-pay transactions increased by 13 percentage points to 57% [5] New Business Lines - Revenues from new business lines grew by 19% in constant dollars, with Visa Direct surpassing 10 billion transactions over the past 12 months and achieving 3 billion transactions in the latest quarter, reflecting a 34% increase [6][7] - The launch of the X Money account will enable 600 million active users to transfer funds instantly, enhancing the speed of payments for creators on the X platform [7] Consumer Spending and Revenue Growth - Consumer holiday spending growth in the U.S. was in the upper-mid-single digits year-over-year, with eCommerce card-not-present volume up 16% YOY and commercial payments volume rising 6% YOY [7] - Net revenue growth is anticipated to be in the high-single digits to low-double digits for the current quarter [8] Value-Added Services - The company is focused on expanding value-added services, with notable acquisitions like Pismo and FeatureSpace contributing to building sales pipelines [9] Future Developments - Visa is on track to launch its Visa A2A offering in early 2025, initially focusing on bill payments, which is expected to benefit clients and partners in the ecosystem [10]

Core Insights - Visa reported revenue of $9.51 billion for the quarter ended December 2024, reflecting a year-over-year increase of 10.2% and exceeding the Zacks Consensus Estimate of $9.34 billion by 1.82% [1] - The company's EPS for the quarter was $2.75, up from $2.41 in the same quarter last year, surpassing the consensus estimate of $2.66 by 3.38% [1] Financial Performance Metrics - Total transactions reached 63.8 billion, exceeding the average analyst estimate of 63.19 billion [4] - Total volume was $4,148 billion, slightly above the estimated $4,124.59 billion [4] - Payments volume in the U.S.A was $1,720 billion, surpassing the estimate of $1,692.71 billion [4] - International transaction revenues were reported at $3.44 billion, compared to the average estimate of $3.39 billion, marking a 14% year-over-year increase [4] - Other revenues amounted to $912 million, exceeding the estimate of $829.74 million and reflecting a significant year-over-year change of 31.8% [4] Stock Performance - Visa's shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Fiscal First Quarter 2025 Financial Results January 30, 2025 ©2025 Visa. All rights reserved. Fiscal First Quarter 2025 Results | YoY increase / (decrease) except for Effective Income Tax Rate | Net Revenue | Operating Expenses | Effective Income Tax Rate | Diluted Class A Common Stock Earnings Per Share | | --- | --- | --- | --- | --- | | GAAP Nominal-Dollar Basis | 10% | 22% | 17.4% | 8% | | Non-GAAP Nominal-Dollar Basis(1) | 10% | 11% | 17.7% | 14% | | Foreign Currency Impact(2) | ~0.5% | (~1%) | N/A | ~ ...

Core Insights - Elon Musk's X is launching X Money, a peer-to-peer payment platform in partnership with Visa, aiming to compete with services like Venmo and Zelle [1][2] - X Money will allow users to connect debit cards for payments, transfer money instantly to bank accounts, and access X Wallet via Visa Direct [2] - The initiative aligns with Musk's vision of transforming X into an "everything app" that offers multiple services [2] User Requirements - Users will likely need an X account to utilize X Money, similar to the requirement of an Apple account for Apple Pay [3] - This requirement may also serve to attract more users to the X platform [3] User Base and Competition - Since Musk's acquisition, X has lost millions of users, with many migrating to platforms like Meta's Threads and Bluesky, which has gained 27 million users since November [4] - The introduction of X Money could enhance convenience for creators on the platform to receive payments directly [4] Security and Fees - Details regarding the security of banking data and potential fees for transferring money to bank accounts remain unclear [5] - Other peer-to-peer apps may charge fees for instant transfers and withdrawals, which could also apply to X Money [5] Cryptocurrency Integration - Currently, there is no mention of cryptocurrency transactions being available through X Money, despite Musk's support for Dogecoin [6] - Future plans for X Money may include separate crypto transactions, but this remains uncertain [6] Launch Timeline - The official launch date for X Money is not yet clear, and it is uncertain whether the rollout will occur in phases or be available internationally [7] - Neither Visa nor X has provided further comments regarding the launch [7]

Group 1: Earnings Performance - Visa reported quarterly earnings of $2.75 per share, exceeding the Zacks Consensus Estimate of $2.66 per share, and up from $2.41 per share a year ago, representing an earnings surprise of 3.38% [1] - The company posted revenues of $9.51 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.82%, compared to $8.63 billion in the same quarter last year [2] - Over the last four quarters, Visa has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Visa shares have increased approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $2.67 on revenues of $9.55 billion, and for the current fiscal year, it is $11.18 on revenues of $39.3 billion [7] Group 3: Industry Context - The Financial Transaction Services industry, to which Visa belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Visa's stock performance [5][6]

Financial Performance - For the three months ended December 31, 2024, net revenue increased by 10% to $9,510 million compared to $8,634 million in the prior year[91]. - Net income for the period was $5,119 million, reflecting a 5% increase from $4,890 million in the previous year[91]. - Non-GAAP net income increased by 11% to $5,463 million, with non-GAAP diluted earnings per share rising by 14% to $2.75[91]. - Service revenue rose by 8% to $4,208 million, driven by a 6% growth in nominal payments volume[106]. - Data processing revenue increased by 9% to $4,745 million, supported by an 11% growth in processed transactions[107]. - Cash provided by operating activities increased to $5,396 million, up from $3,614 million in the previous year[112]. Operating Expenses - Operating expenses rose by 22% to $3,276 million, primarily due to higher personnel and general administrative expenses[93]. - Non-GAAP operating expenses increased by 11% to $2,917 million, driven by similar factors as GAAP operating expenses[94]. - Operating expenses totaled $3,276 million, reflecting a 22% increase from $2,680 million in the prior year[108]. Shareholder Actions - The company repurchased 13 million shares of class A common stock for $3.9 billion, with remaining authorized funds for repurchase at $9.1 billion[97]. - The company repurchased $3.9 billion of its class A common stock during the three months ended December 31, 2024[116]. - A quarterly cash dividend of $1.2 billion was declared and paid to common and preferred stockholders[117]. Acquisitions - The company acquired Featurespace Limited for $946 million, enhancing its capabilities in real-time AI payments protection technology[95]. - The company acquired Featurespace for $946 million in December 2024[118]. Taxation - The effective income tax rate for the period was 17.4%, with a total income tax provision of $1,081 million[101]. - The effective income tax rate decreased to 17% from 19% year-over-year[110]. Market and Regulatory Changes - The Financial Accounting Standards Board (FASB) issued ASU 2023-07 in November 2023, enhancing reportable segment disclosure requirements, effective for annual periods beginning October 1, 2024[119]. - ASU 2023-09, issued in December 2023, improves income tax disclosures, effective for annual periods beginning October 1, 2025[120]. - ASU 2024-03, issued in November 2024, requires additional disclosure about specific expense categories, effective for annual periods beginning October 1, 2027[121]. - There have been no significant changes to market risks since September 30, 2024[122]. Transaction Volume - For the three months ended December 31, 2024, processed transactions and nominal payments volume contributed to revenue growth, while exchange rate movements had no material impact[92]. - Total nominal payments volume increased by 5% year-over-year to $1,649 billion in the U.S. and $1,760 billion internationally[104].