Visa $V beat estimates, yet its shares are falling after the results📉
Why? It’s the same old story...a more cautious outlook for 2027. Shares recently hit a new ATH, so investors simply want everything to be “just right.” But there’s a dividend increase🥳
📈Visa increased net revenue by 13% to $12.1 billion in fiscal Q4.
📈Adjusted earnings per share rose 17% to $3.48, while analysts expected $3.44.
📈For the full fiscal year, the company reported record revenue of $46 billion, up 15%—the fastest pace in more than 15 years, excluding the post-COVID recovery and acquisitions, according to CEO Ryan McInerney.
The soccer World Cup also boosted results, bringing large numbers of international visitors to the US.
Visa returned $25.6 billion to shareholders over the year through buybacks and dividends, and is raising its quarterly dividend by 16% to $0.78.
Investors were disappointed by the outlook, however. For fiscal 2027, the company expects revenue growth in the low double digits and adjusted EPS growth in the low double digits to low teens. Expectations were around 14%, so shares fell more than 1.5% in after-hours trading after the results were released.
At a valuation of around 34 times earnings, the market simply won’t tolerate even a slight slowdown.