Visa Shares Fell Second Day on Quarterly Report after Payment Volume Misses, while Expense Projections Being Upgraded

Visa (V) shares fell 2.84% in premarket trading today, on Friday, January 26, after the payments network behemoth reported slightly weaker-than-expected payments volume in Q1 of fiscal 2024 and raised its forecast for fiscal 2024 spending growth. The company is apparently facing some geopolitical headwinds following bans of issuance on certain international banks.

Fiscal Q1 non-GAAP earnings per share were reported at $2.41, beating analysts' average estimate of $2.34 and posting an increase from $2.33 in Q4 2023 to $2.18 in Q1 2023. Net sales subsequently rose to $8.63 billion for the quarter ended Dec. 31, 2023, surpassing the $8.56 billion figure. Consensus forecast was at $8.61 billion last quarter, compared with $7.94 billion a year ago.

Visa’a overall payment volume increased by 8% YoY, while cross-border transaction volume increased by 16%, and transactions processed increased by 9%. Those compared to a 9% increase in payment volumes, a 16% increase in cross-border transactions and a 10% increase in transactions processed in Q4 2023.

Annual net sales growth is now projected in the low double digits, compared to previous guidance of high single digits to low double digits.