Visa (V.N) reported fourth-quarter profits that exceeded Wall Street expectations, with shares rising 2% in after-hours trading. U.S. consumer spending has remained robust, bolstered by travel and dining, prompting analysts to foresee a soft landing for the economy.
In the quarter, Visa’s payment volume increased by 8% on a constant-dollar basis, and cross-border volume surged by 13%. CFO Chris Suh noted that consumer spending across segments has been stable, with expectations of continued resilience into 2025. However, growth in the Asia-Pacific region has fallen short, particularly in China, due to weak business sentiment and a property crisis. Visa forecasts adjusted net revenue growth for 2025 in the high single digits to low double digits, slightly below Wall Street’s 10.8% estimate.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
In addition to its earnings, Visa faces a lawsuit from the U.S. Justice Department, alleging monopolistic practices in the debit card market, which the company calls meritless. This follows a previous legal setback in June when a judge rejected a $30 billion antitrust settlement involving Visa and Mastercard (MA.N). CEO Ryan McInerney expressed confidence in Visa’s competitive position.
Visa also plans to lay off about 1,400 employees and contractors by year-end. The company reported fourth-quarter net revenue of $9.62 billion, exceeding analyst expectations of $9.49 billion. On an adjusted basis, Visa earned $2.71 per share, beating the expected $2.58. Visa’s shares have gained 8.3% in 2024, trailing behind the S&P 500 index’s 22% rise.
