What happened
Visa (V -0.48%) might be an awesomely powerful payment card brand and processor around the world, but it didn't look so strong on the market Wednesday. After reporting its latest set of quarterly results, the company saw its share price decline by almost 0.7%. That was worse than the essentially flat performance of the S&P 500 index.
So what
After market hours on Tuesday, Visa published its third quarter of fiscal 2023 results. Its net revenue grew by 12% on a year-over-year basis to $8.12 billion, on a 9% rise in total payments volume. On the bottom line, the payment card giant's non-GAAP (generally accepted accounting principles) adjusted profit of $4.5 billion, or $2.16 per share, represented a 7% improvement over the third quarter of fiscal 2022.
On average, analysts tracking the stock were modeling $8.06 billion for revenue, and an adjusted net income figure of $2.11 per share.
In the earnings release, Visa management attributed the improvements to consumer spending that continues to be robust. It also said that cross-border payments volume was strong, supported by the continued recovery from the thick of the pandemic era and a solid summer tourism season.
Now what
Visa has had blowout quarters previously in its history, which is perhaps a key reason for the tepid market reaction to this one. Another worry might be that the success of the cross-border segment is temporary and fueled by summer vacationer spending.
I don't think anyone should worry about Visa's prospects for continued growth. The company is far and away the largest, most extensive card payment brand and processor in the world, and it is a frontline soldier in the war on cash. Perhaps this slump presents an opportunity to grab the shares at a slight discount.
