VISA INC Reports 11.5% Increase in Revenue and 22.0% Increase in Net Income for Third Quarter of FY2023
August 28, 2023
☀️Earnings Overview
For the third quarter of FY2023 ending June 30 2023, VISA INC ($NYSE:V) reported total revenue of USD 8.1 billion, a year-over-year increase of 11.5%, and net income of USD 4.2 billion, a year-over-year increase of 22.0%.
Analysis
GoodWhale has conducted an in-depth analysis of VISA INC‘s wellbeing. According to the Star Chart, VISA INC has a high health score of 9/10 when it comes to cashflows and debt, indicating that it is more than capable of sustaining future operations even during times of crisis. VISA INC is particularly strong in dividend, growth, and profitability, while its asset score is relatively weaker. Based on this information, GoodWhale has classified VISA INC as a ‘gorilla’ type of company, which indicates that they have achieved stable and high revenue or earning growth due to their strong competitive advantage. Investors who are interested in such a company would be those who are looking for long-term capital appreciation with a relatively low-risk factor. These investors may benefit from the company’s steady growth and profitability. Furthermore, those looking for dividend yield may find that VISA INC provides an attractive offering as well. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Visa Inc. More…
| Total Revenues | Net Income | Net Margin |
| 31.83k | 16.53k | 53.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Visa Inc. More…
| Operations | Investing | Financing |
| 19.7k | -711 | -17.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Visa Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 89.23k | 50.25k | 18.7 |
Key Ratios Snapshot
Some of the financial key ratios for Visa Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.6% | 12.3% | 65.6% |
| FCF Margin | ROE | ROA |
| 58.6% | 33.7% | 14.6% |
Peers
In the world of electronic payments, there are four major players: Visa Inc, Mastercard Inc, PayPal Holdings Inc, and American Express Co. All four of these companies are in constant competition with one another to gain market share. While Visa and Mastercard are the traditional giants in the industry, PayPal and American Express have been making inroads in recent years.
– Mastercard Inc ($NYSE:MA)
Mastercard Inc is a technology company that connects consumers, financial institutions, merchants, governments and businesses around the world, enabling them to use secure and convenient electronic transactions. As of 2022, Mastercard Inc has a market cap of 287.75B and a ROE of 110.3%. The company operates in two segments: Global Payment Solutions and Data & Services.
– PayPal Holdings Inc ($NASDAQ:PYPL)
Founded in 1998, PayPal Holdings, Inc. is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. PayPal has over 300 million active customers and handles over $232 billion in total payment volume on an annual basis. The company operates as a payment processor for online vendors, auction sites, and other commercial users, for which it charges a fee. In addition, PayPal offers a credit product called “Bill Me Later,” which allows customers to finance their online purchases.
– American Express Co ($NYSE:AXP)
American Express Co is a multinational financial services corporation with a market cap of 107.94B as of 2022. The company is headquartered in Three World Financial Center in New York City. American Express Co is best known for its credit card, charge card, and traveler’s cheque businesses.
Summary
Investors in Visa Inc. have reason to be pleased after the release of their third-quarter financial results. Revenue for the quarter ending June 30 2023 totaled $8.1 billion, an increase of 11.5% from the same period last year. Net income, meanwhile, rose 22.0% to $4.2 billion, a record for the company.
These numbers demonstrate the strength of Visa’s business model and its ability to generate consistent returns for its shareholders. With a strong balance sheet and steady share price appreciation, Visa appears well-positioned to continue its growth trajectory in the coming quarters.
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