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Compared to Estimates, Visa (V) Q1 Earnings: A Look at Key Metrics

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For the quarter ended December 2022, Visa (V - Free Report) reported revenue of $7.94 billion, up 12.4% over the same period last year. EPS came in at $2.18, compared to $1.81 in the year-ago quarter.

The reported revenue represents a surprise of +3.38% over the Zacks Consensus Estimate of $7.68 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +8.46%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Visa performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total volume: $3630 billion versus the four-analyst average estimate of $3824.9 billion.
  • Payments volume-U.S.A: $1523 billion versus $1563.5 billion estimated by three analysts on average.
  • Payments volume-Canada: $98 billion versus the three-analyst average estimate of $106.2 billion.
  • Payments Volume - Europe: $546 billion versus the three-analyst average estimate of $586.6 billion.
  • Payments volume-LAC: $194 billion versus the three-analyst average estimate of $203.9 billion.
  • Payments volume-CEMEA: $148 billion versus the three-analyst average estimate of $160.1 billion.
  • Total payments volume: $3014 billion compared to the $3180.4 billion average estimate based on three analysts.
  • Revenues - Service revenues: $3.51 billion versus the eight-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +10%.
  • Revenues - Data processing revenues: $3.83 billion compared to the $3.97 billion average estimate based on eight analysts. The reported number represents a change of +5.9% year over year.
  • Revenues - International transaction revenues: $2.80 billion versus $2.63 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +28.7% change.
  • Revenues - Other revenues: $587 million compared to the $510.92 million average estimate based on seven analysts. The reported number represents a change of +30.7% year over year.
  • Revenues - Client incentives: -$2.79 billion compared to the -$2.81 billion average estimate based on seven analysts. The reported number represents a change of +17.5% year over year.

View all Key Company Metrics for Visa here>>>

Shares of Visa have returned +9.7% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.


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