Visa: Growth Reaffirmed


About a month ago, we analyzed Visa (NYSE:V) and its growth prospects in the article “Visa: Growth And Room To Run.”

The company’s Q2 2017 earnings just reaffirmed the position that we took on the stock a month back. We think Visa still has a strong growth story moving forward and will continue to reward investors.

Q2 Earnings Review

The quarter was outstanding. Visa reported Q2 EPS of $0.86, beating analyst expectations of $0.79. Revenue also came in at $4.48 billion, beating expectations of $4.295 billion – a 23% increase from 2016 figures.

Payment volumes jumped 37% to $1.73 trillion in Q2, with the company seeing strong growth internationally. The strong international growth is largely attributed to Visa’s $23 billion purchase of Visa Europe in June of last year. Visa Europe made up nearly one-fifth of the total payments volume.

Data from Visa’s Earnings Call

Payments volume in the United States increased by 11.7% to $775 billion. Economic strength is creating a better spending environment, and major portfolio contracts with companies such as Costco (NASDAQ:COST) are largely responsible for this increase.



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