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Opinions Kash Pashootan
Visa Inc.VCOMMENTAug 14, 2015
Stock price when the opinion was issued
As of Jun 22, 2026. Market Open.
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EPS of $2.41 beat estimates of $2.34 and sales of $8.6B beat estimates of $8.55B. Net income grew by 17% over the prior year, and its sales grew by 9%. Cross-border volume saw a large increase, of 16%, and management noted that it is off to a solid start with net revenues growing 9% and earnings growing even faster. It conducted share repurchases and dividends of $4.4B in the quarter, and the CEO sees strong opportunity across consumer payments and value added services. Operating expenses declined, leading to profit margin expansion, and its outlook for FY2024 is low double-digit revenue and operating expense growth, and a low-teens earnings growth rate. Overall, these were solid results, and while the stock dropped slightly today, it has been recovering.
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Long term 0 a very good investment. Digital payments excepted to growth further. Very good business with high margins. Lots of room for top line revenue growth (expecting double digits). "Tap Pay" growth accelerated curing Covid-19. Will continue to hold shares.
Christine Poole
#1 in the world. Digital trend will continue. Fantastic brand recognition and strategic partnerships. 14-15% EPS growth rate for next several years.
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Stan WongToll booth, no credit risk. Catchup travel benefits remain as a consequence of Covid shutdowns. Still lots of growth to move from cash transactions to plastic. B2B growth. Associated loyalty programs push its use. Innovative. Network is hard to replicate. Yield is 0.8%.
(Analysts’ price target is $284.06)
Paul Harris, CFA
Trading at 25x earnings, not excessive given the fundamentals. Lots of room for growth to move from cash to plastic. 60% of business is international, where growth is about twice that of NA. He'd buy today.
Gordon ReidWonderful business. One of the two dominant payment networks. Prefers it to MA, as it's the largest, with the most scale, and the most profitable. Anti-trust penalties are offset by volume growth. Little capex, with less than 10% of cashflow needed to maintain the network. Benefits from trend to digital.
Rich valuation. Wait to add.
Chris BlumasGreat company with excellent business model. Scores 10/10 fundamentally for team. Largest payment processor in the world. Amazing brand reach. Expecting $276 share price. Nature of business means company will be around for a long time. Move to cashless society also good for business. Rising consumer debt also good for business.
Brianne GardnerOwns shares of company. Very strong company with lots of room to run. Excellent brand name with very strong technology. Has owned shares before and has since re-purchased when the shares fell. Compares very well with Mastercard in terms of valuation and technology.
Gordon ReidIt is like a toll booth and gets paid every time someone uses their card. It doesn't have the credit risk like banks do. It is hard for other companies to duplicate the processing part of Visa or Mastercard so this helps alleviate the risk of competition. There is lots of growth in the business to business area. It has had a great year because travel has taken off and lots of money is made from travel
Paul Harris, CFAImproving post-pandemic spending and travel have been helping. Outperforming broader index. Long runway for growth in the electronic payment space, global volumes will push higher. Strong chart. Above 200-day and 200-week MAs. Sees earnings growth, revenue growth of 10-11%. Steady.
Stan WongCross-border travel recovery since Covid is a big margin. Talk about transaction rates going down, but it seems to be able to weather those storms. Real moat around its technology. He remains positive.
Zachary Curry Reports next week and will blow it out of the water. They carry nearly no debt, not exposed to the consumer, and have an incredible balance sheet.
Kevin Sullivan
North America has been the lead in the declining use of cash and well ahead of other geographies, especially China and emerging markets. We are still in the early days, and there is still a significant transformation to take place. This company stands to benefit. The chart is basically straight up and on a valuation basis you have to scratch your head and ask how much of that is priced in. He feels there is still a lot of upside, but you have to be willing to accept some volatility. You can buy in and then buy more on weakness, or wait to step in on weakness, but the risk is that you are going to continue to miss upside.