Visa Inc (NYSE:V) shares have recovered after an initial fall on the heels of the company’s fiscal fourth quarter results Tuesday evening.
The stock traded 0.4% higher at $235.60 by Wednesday afternoon, which is more in line with the view of analysts at Bank of America.
“We suspect the tepid after-hours stock reaction may reflect a combination of crowded positioning, slower October US volumes, and a somewhat backend-loaded F24 outlook,” the analysts wrote.
Visa reported adjusted earnings of $2.33 per share, up 21% year-over-year and above analyst expectations of $2.13 per share. Revenue climbed 11% year-over-year to $8.6 billion, topping expectations of $8.12 billion.
“Revenue growth is expected to be the lowest in F1Q, and accelerate throughout the year,” analysts added. “...We remain bullish on V's business model quality, recession-resistance, secular tailwinds, and reasonable valuation.”
BofA reiterated its Buy rating and price target of $275.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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