Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
Visa (V) is the worst Dow Jones stock Wednesday after the payments giant came up short on both the top- and bottom-lines in its fiscal third quarter.
In the three months ended June 30, Visa's revenue increased 10% year-over-year to $8.9 billion, driven by a 7% increase in payments volume, a 14% rise in cross-border volume and a 10% jump in processed transactions. Its earnings per share (EPS) rose 12% from the year-ago period to $2.42.
The company's strong quarter was helped by stability in its key business drivers, including processed transactions, said Visa CEO Ryan McInerney in a statement. "During the quarter, we expanded our partnerships with many clients around the world and announced several new innovations that will help drive the future of commerce."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, Visa's results fell short of analysts' expectations. Wall Street was anticipating revenue of $8.96 billion and earnings of $2.43 per share, according to Bloomberg.
On the Visa's conference call, Chief Financial Officer Chris Suh said the company expects payments volume and processed transactions to grow at a similar rate in the final quarter of its fiscal year, while cross-border volume is expected to be slightly lower.
"Pulling it all together, we expect adjusted net revenue growth in the low double digits, which equates to a slight improvement from the 10% adjusted revenue growth rate in the third quarter," Suh said. He added that earnings per share is forecast to grow "in the high end of low double digits."
Is Visa stock a buy, sell or hold?
Visa shares are in negative territory on a year-to-date basis, but Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for V stock is $304.58, representing implied upside of about 19% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm William Blair is bullish on Visa and thinks market participants should be buying the stock.
"We reiterate our Outperform [the equivalent of a Buy]rating and recommend investors allocate new investment dollars to Visa," William Blair analyst Andrew Jeffrey writes in a note to clients. "Our view remains that Visa is a core fintech holding, and we believe that the stock offers through-the-cycle outperformance and relative insulation from momentum-driven technology strategies."
Related Content
-
Is There Such a Thing As a Safe Stock? 17 Safe-Enough IdeasNo stock is completely safe, but we can make educated guesses about which ones are likely to provide smooth sailing.
-
We're 64 with $4.3 million and can't agree on when to retire.I want to retire now and pay for health insurance until we get Medicare. My wife says we should work 10 more months. Who's right?
-
Missed an RMD? How to Avoid That (and the Penalty) Next TimeIf you miss your RMDs, you could face a hefty fine. Here are four ways to stay on top of your payments — and on the right side of the IRS.
-
Is There Such a Thing As a Safe Stock? 17 Safe-Enough Ideas
No stock is completely safe, but we can make educated guesses about which ones are likely to provide smooth sailing.
-
Missed Your RMD? 4 Ways to Avoid Doing That Again (and Skip the IRS Penalties), From a Financial Planner
If you miss your RMDs, you could face a hefty fine. Here are four ways to stay on top of your payments — and on the right side of the IRS.
-
What Really Happens in the First 30 Days After Someone Dies (and Where Families Get Stuck)The administrative requirements following a death move quickly. This is how to ensure your loved ones won't be plunged into chaos during a time of distress.
-
AI-Powered Investing in 2026: How Algorithms Will Shape Your PortfolioAI is becoming a standard investing tool, as it helps cut through the noise, personalize portfolios and manage risk. That said, human oversight remains essential. Here's how it all works.
-
If You'd Put $1,000 Into Caterpillar Stock 20 Years Ago, Here's What You'd Have TodayCaterpillar stock has been a remarkably resilient market beater for a very long time.
-
Good Stock Picking Gives This Primecap Odyssey Fund a LiftOutsize exposure to an outperforming tech stock and a pair of drugmakers have boosted recent returns for the Primecap Odyssey Growth Fund.
-
More Tools to Build a Bond LadderVanguard aims to launch a line of target-maturity corporate bond ETFs.
-
A Newly Retired Couple With a Portfolio Full of Winners Faced a $50,000 Tax Bill: This Is the Strategy That Helped Save ThemLarge unrealized capital gains can create a serious tax headache for retirees with a successful portfolio. A tax-aware long-short strategy can help.
