Erste Group Bank Comments on Visa's FY2027 Earnings (NYSE:V)

Key Points

• Erste Group Bank raised its FY2027 earnings estimate for Visa slightly to $14.89 per share from $14.86, and that view remains above the current consensus estimate of $13.09.
• Visa’s recent quarterly results beat expectations, with earnings of $3.31 per share versus $3.10 expected and revenue of $11.23 billion versus $10.75 billion expected, driven by 17.1% year-over-year revenue growth.
• Analyst sentiment and shareholder returns remain supportive, with Visa holding a consensus “Buy” rating and a $387.67 price target, while the company also authorized a $20 billion share repurchase program and continues its quarterly dividend.

Visa Inc. (NYSE:V - Free Report) - Erste Group Bank upped their FY2027 earnings estimates for Visa in a research report issued on Friday, May 15th. Erste Group Bank analyst H. Engel now forecasts that the credit-card processor will post earnings of $14.89 per share for the year, up from their prior forecast of $14.86. The consensus estimate for Visa's current full-year earnings is $13.09 per share.

A number of other brokerages have also recently weighed in on V. Bank of America initiated coverage on Visa in a research report on Thursday, March 5th. They issued a "buy" rating and a $410.00 price target for the company. Cantor Fitzgerald restated an "overweight" rating and issued a $400.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Daiwa Securities Group upgraded shares of Visa from a "neutral" rating to an "outperform" rating and set a $370.00 price objective for the company in a research note on Monday, February 2nd. TD Cowen restated a "buy" rating on shares of Visa in a research note on Friday, January 30th. Finally, Rothschild & Co Redburn set a $385.00 price objective on shares of Visa in a research note on Wednesday, January 28th. Six research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $387.67.

Visa Price Performance

Shares of NYSE:V opened at $325.42 on Monday. Visa has a fifty-two week low of $293.89 and a fifty-two week high of $375.51. The business has a 50-day moving average of $311.20 and a two-hundred day moving average of $325.74. The stock has a market capitalization of $583.73 billion, a P/E ratio of 28.35, a P/E/G ratio of 1.74 and a beta of 0.78. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping analysts' consensus estimates of $3.10 by $0.21. Visa had a return on equity of 65.00% and a net margin of 51.68%.The company had revenue of $11.23 billion during the quarter, compared to analysts' expectations of $10.75 billion. During the same quarter in the previous year, the firm earned $2.76 earnings per share. The business's quarterly revenue was up 17.1% compared to the same quarter last year.

Hedge Funds Weigh In On Visa

Large investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its position in shares of Visa by 50.1% in the 4th quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor's stock worth $6,522,000 after acquiring an additional 6,883 shares during the period. Revolve Wealth Partners LLC lifted its position in shares of Visa by 68.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 11,811 shares of the credit-card processor's stock worth $3,733,000 after acquiring an additional 4,817 shares during the period. Nicholas Hoffman & Company LLC. raised its stake in shares of Visa by 4.6% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 10,941 shares of the credit-card processor's stock valued at $3,834,000 after buying an additional 477 shares in the last quarter. Matrix Asset Advisors Inc. NY raised its stake in shares of Visa by 16.9% in the 2nd quarter. Matrix Asset Advisors Inc. NY now owns 1,133 shares of the credit-card processor's stock valued at $402,000 after buying an additional 164 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its stake in shares of Visa by 13.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 18,367 shares of the credit-card processor's stock valued at $6,521,000 after buying an additional 2,230 shares in the last quarter. 82.15% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CFO Chris Suh sold 10,639 shares of the company's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the completion of the transaction, the chief financial officer directly owned 9,872 shares in the company, valued at $3,206,524.32. This represents a 51.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Ryan Mcinerney sold 31,455 shares of the company's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the transaction, the chief executive officer owned 15,174 shares of the company's stock, valued at approximately $5,161,284.36. The trade was a 67.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 42,744 shares of company stock valued at $14,356,010. Insiders own 0.12% of the company's stock.

Visa declared that its Board of Directors has initiated a share repurchase plan on Tuesday, April 28th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the credit-card processor to reacquire up to 3.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Visa Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Tuesday, May 12th will be given a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, May 12th. Visa's payout ratio is currently 23.34%.

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Trump said he urged China to open its credit card market more to Visa, raising hopes for future international growth if market access improves. Reuters related coverage
• Positive Sentiment: Visa is expanding digital identity and card activation tools, while also launching AI-powered fan intelligence capabilities, reinforcing its innovation and product-growth story. Visa Links Tap Identity And AI Fan Data To Its Growth Story
• Positive Sentiment: Recent commentary highlighted strong spending trends and digital payments adoption, which generally support transaction volume for Visa’s network. Credit Card Charges Show This Glaring Divergence With The Economy
• Neutral Sentiment: Visa CFO Chris Suh sold shares in a disclosed insider transaction, which may slightly pressure sentiment but does not change the company’s operating outlook. SEC Form 4 filing
• Negative Sentiment: Separate news about delays in U.S. green-card processing and Hungary’s visa-worker policy are mostly unrelated to Visa Inc.’s business and should have limited direct impact on the stock. US Delays Green Card Processing For Indians In Key Visa Categories

About Visa

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world's largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa's network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa's product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.

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