The post Visa stock drops after disappointing earnings: Buy the dip? appeared on BitcoinEthereumNews.com.

Key points Visa posted a 20% earnings increase in its fiscal third quarter. While revenue was up 10%, it was short of analysts’ estimates. Visa stock was down 3% Wednesday. Should you buy the dip? The world’s largest payment processor saw its stock price plummet after it missed revenue estimates. Stocks were tanking on Wednesday, particularly the Nasdaq, which fell some 540 points, or 3%, while the S&P 500 was down 100 points, or 1.8%. Disappointing earnings from some mega cap stocks, including Visa (NYSE: V), likely contributed to the selloff. Visa had solid numbers in its fiscal third quarter, but it missed revenue estimates. The payment processor generated $8.9 billion in revenue, up 10% year-over-year, but it slightly missed estimates of $8.92 billion. Net income rose 17% to $4.9 billion, while earnings per share jumped 20% to $2.40 per share, which was in line with estimates. So, the results were somewhat mixed, but revenue misses are rare for Visa, which likely caused its stock price to fall some 3.7% on Wednesday to $255 per share. Year-to-date, Visa stock is now down 2.3% for the year. It has been a difficult year for Visa, but does this latest dip present a buying opportunity for investors? A rare revenue miss The last time Visa missed revenue estimates was in 2020, according to Bloomberg, so it is a rare event, indeed. However, keep in mind that Visa did grow revenue by 10%, just not as much as Wall Street analysts expected. The reason it disappointed on the revenue front was that payment volume came in lower than anticipated. Payment volume, the amount spent by Visa cardholders, increased 7% year-over-year, but that was a little below what analysts had anticipated. Further, payment volume was roughly similar to Visa’s fiscal second quarter ended March…

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Filed under: News - @ July 25, 2024 6:06 am