Visa Inc. (NYSE:V) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Last week, you might have seen that Visa Inc. (NYSE:V) released its third-quarter result to the market. The early response was not positive, with shares down 6.8% to US$254 in the past week. It was a credible result overall, with revenues of US$8.9b and statutory earnings per share of US$2.40 both in line with analyst estimates, showing that Visa is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Visa

Taking into account the latest results, the current consensus from Visa's 33 analysts is for revenues of US$39.4b in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to US$11.02. Before this earnings report, the analysts had been forecasting revenues of US$39.7b and earnings per share (EPS) of US$11.12 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$304, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Visa at US$330 per share, while the most bearish prices it at US$250. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Visa is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So it's pretty clear that Visa is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Visa. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Visa analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Visa's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com