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The payment giant saw total payment volumes, in constant dollars, grow by 9%, an improvement from the 8% observed in the fourth quarter of 2024. This growth was largely fueled by international markets, which saw an 11% increase, surpassing the 10% growth in the previous quarter. In the United States, payment volumes rose by 7%, a significant improvement from the 5% growth in the fourth quarter of 2024. U.S. consumer holiday spending was particularly strong, with Visa noting that discretionary categories such as retail, travel, and entertainment were the best performers. The company maintains strong cash flows and has consistently raised its dividend for 17 consecutive years, as highlighted in InvestingPro’s comprehensive analysis report, available for over 1,400 US stocks. The company maintains strong cash flows and has consistently raised its dividend for 17 consecutive years, as highlighted in InvestingPro’s comprehensive analysis report, available for over 1,400 US stocks.
The payment giant saw total payment volumes, in constant dollars, grow by 9%, an improvement from the 8% observed in the fourth quarter of 2024. This growth was largely fueled by international markets, which saw an 11% increase, surpassing the 10% growth in the previous quarter. In the United States, payment volumes rose by 7%, a significant improvement from the 5% growth in the fourth quarter of 2024. U.S. consumer holiday spending was particularly strong, with Visa noting that discretionary categories such as retail, travel, and entertainment were the best performers. The company maintains strong cash flows and has consistently raised its dividend for 17 consecutive years, as highlighted in InvestingPro’s comprehensive analysis report, available for over 1,400 US stocks.
The payment giant saw total payment volumes, in constant dollars, grow by 9%, an improvement from the 8% observed in the fourth quarter of 2024. This growth was largely fueled by international markets, which saw an 11% increase, surpassing the 10% growth in the previous quarter. In the United States, payment volumes rose by 7%, a significant improvement from the 5% growth in the fourth quarter of 2024. U.S. consumer holiday spending was particularly strong, with Visa noting that discretionary categories such as retail, travel, and entertainment were the best performers.
Visa’s management has updated its fiscal year 2025 guidance, now expecting net revenues to grow at a low double-digit percentage rate, an increase from the previously forecasted high single-digit to low double-digit range. This is anticipated to drive EPS growth into the low teens, a more optimistic outlook compared to the previous expectation of the high end of a low double-digit percentage growth. Operating expenses are projected to rise at a high single-digit to low double-digit percentage rate.
For the second quarter, Visa anticipates net revenues to grow at a high single-digit to low double-digit percentage rate, considering the leap year comparison. The company expects operating expenses and EPS to follow a similar growth pattern. The early adoption of artificial intelligence to enhance operational performance was highlighted during the fourth quarter as a focus area, with management citing productivity gains and other improvements from AI during the earnings call.
In other recent news, Visa Inc (NYSE:V). has been the focus of multiple analyst upgrades following its robust fiscal first quarter 2025 performance. TD Cowen analyst Bryan Bergin lifted the company’s price target to $363, citing solid consumer spending and cross-border activity. Similarly, UBS analyst Tim Chiodo increased the price target for Visa to $400, following an 11% year-over-year organic revenue growth. BMO Capital Markets and Keefe, Bruyette & Woods also raised their price targets to $370 and $400 respectively, reflecting confidence in Visa’s ability to maintain double-digit top-line growth.
In other developments, Scott Bessent, Treasury Secretary, has been appointed as the acting director of the Consumer Financial Protection Bureau (CFPB) by President Trump. This appointment is expected to halt certain rulings such as the credit card late fee, bank overdraft, and open banking. TD Cowen analyst Jaret Saiberg commented that Bessent’s selection of senior deputies for the daily management of the regulator could reduce the risk to banks and other consumer financial companies, including Visa.
These are the latest updates in the financial sector, providing investors with a snapshot of recent developments. Please note, these developments do not indicate future performance and should not be used as the sole factor in making investment decisions.
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