From Seekingalpha · Yiannis Zourmpanos · · 40s
Visa Q4 Revenue Beat
Visa's Q4 revenue beat may not be enough for investors.
In brief
Visa's Q4 revenue beat may not be enough for investors. Visa's Q4 revenue rose 34% to $3.8 billion, but high-end value-added services growth may not sustain. Originally reported by Seekingalpha.
Q4 Revenue Growth
Visa's Q4 revenue rose 34% to $3.8 billion, reaching roughly 30% of Visa's net revenue.
Value-Added Services Expansion
Payment volume grew 10%, while net revenue rose 14%, showing Visa is becoming less dependent on consumer spending.
Management Guidance
Management guides to high-end low-double-digit revenue growth, while consensus expects FQ4 EPS of $3.44, up 15.5% year over year.
Valuation Concerns
Visa trades near 30x forward earnings versus its 28x five-year average, leaving little room for execution misses.
The short version
Visa's Q4 revenue rose 34% to $3.8 billion, but high-end value-added services growth may not sustain.
