Visa: Another Solid Quarter – Still A Buy

Summary:

  • Visa delivered solid quarterly results and managed to beat both top and bottom line estimates by Wall Street.
  • Payment volume continued to increase, but growth is slowing down compared to previous quarters, although as expected.
  • Visa continues to be a cash flow machine with close to $4 billion in free cash flow which it fully returned to shareholders during the quarter.
  • Visa is trading at a P/E of above 27, but is still not too expensive to buy as I calculate a price target of $252, leaving investors with 9% upside potential.

This has become the standard way of paying

mihailomilovanovic

Introduction

Visa (NYSE:V) released its 1Q23 results aftermarket on January 26, 2022. The company managed to beat both top and bottom-line estimates by Wall Street analysts and shares jumped up about 1.5% aftermarket. At first sight, results looked decent as growth

Afbeelding met tekst Automatisch gegenereerde beschrijving

Seeking Alpha

Returns to shareholders during fiscal 1Q23

Returns to shareholders during fiscal 1Q23 (Visa)

Visa Revenue estimates

Visa Revenue estimates (Seeking Alpha)

Visa EPS estimates

Visa EPS estimates (Seeking Alpha)


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.


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