Visa, the digital payments giant, is set to release its fiscal third-quarter earnings on Tuesday. Here are the key details you need to know:
Profit
In the quarter ended June 30, analysts expect Visa to report a profit of $4.36 billion, or $2.10 per share. This compares to a profit of $3.41 billion, or $1.60 per share, in the same quarter last year.
Adjusted Earnings
When excluding one-time items, FactSet anticipates adjusted earnings to be $2.11 per share.
Revenue
Analysts project an increase in revenue to $8.06 billion, up from $7.28 billion in the year-ago period.
What to Watch
Volumes
Investors will closely monitor Visa’s payments volume and total cross-border volume growth. In the same quarter last year, these figures rose by 12% and 40% respectively. This time, with higher interest rates and ongoing inflation concerns impacting consumer spending, the market will be paying attention to any changes.
Transactions
The frequency of Visa card usage is another key metric to watch. Despite the possibility of reduced overall spending, investors will be interested in seeing if consumers continue to swipe their Visa cards as frequently as they did last quarter, when transactions were up 12%.
Debt
Wall Street will be eagerly waiting for any commentary from Visa’s management regarding consumer debt levels and default risks. As missed payment rates on car loans and credit-card debt increase, analysts will be curious to see if Visa addresses these concerns.