Visa (V) Earnings Release Analysis 25 Jul 2023 Post Market

In their last earnings report they have posted a 6% bottom line beat and reported sales 3% above expectations.

I am looking forward to a solid growth, estimate of 7% earnings growth and 11% higher revenues. This is something that I will be focusing on which is Visa’s Total Payment Volume (TPV), a critical metric for the company’s success.

Their Year-on-year percentage change (%) in Q1 2023 is 8.5, I would expect this to be better with the better than expected earning and revenue growth.

In this article, I would like to look at how Visa fundamental data and technical analysis have been telling us about the company share performance.

Plus what we can expect after the earnings report is released.

I believe Visa should be able to beat the EPS forecast of $2.11 as I am expecting a better TPV and hence, a much better revenue and earnings growth.

But the margin of how much will increase from $2.11 might determine whether Visa share price will surge.

I would be monitoring how Visa would trade on 25 Jul 2023 during premarket and normal hours.

I believe the key to see how much will the EPS beat $2.11 is the TPV.

I believe it would be much better than $2.11 and I would expect a more than 15% change.

Visa has been growing at more than 15% YTD. This should continue and even be better as I forecast the TPV percentage to increase as we are almost completely out of post-pandemic.

Things are returning to normalcy. So I would expect spending and transactions should be better than pre-pandemic level.

If we look at Visa overall revenue and free cash flow, they have maintained at a very stable level.

I would not expect a large change in both of these numbers. Overall, Visa is financially sound and have the capacity to take on any new initiatives.

Investors are very positive on Visa share price and future. This could be due to Visa having 13 consecutive quarters of better than estimate EPS.

I believe with the many acquisition and initiatives Visa has been rolling out, their total transactions in terms of volume and amount should not be reduced.

Visa is still very much the preferred credit card for domestic and overseas travelers. Investors have increased their holdings by 0.8% (last 7 days) and 3.3% (last 30 days).

Visa is current on a nice upward Bull trend, there is no sign of it going to bear trend.

Unless we have a surprise at the earnings release, I would see Visa continue its bull trend for a pretty long period.

The RSI momentum for Visa is good. Something worth noting is the start of a move upside towards the overbought.

This might be triggered by a cause of unexpected events like surprise earnings report. I do not think we would be expecting a worse than forecast result from Visa.

ADX just touch 20 and is between 20 and 40 which indicate a developing trend.

But what might bring to my attention is +DI is very close to -DI which suggest a reversal. I will look at SAR to see if there is any potential reversal for us to take note.

From SAR observation, I can see that the dots are above the price, this indicate a potential reversal to bearish trend.

I would expect things to be clearer or if there is changes, it would be after the earnings release.

I will monitor how Visa would trade on 25 Jul 2023 before its earnings release.

Based on the fundamental analysis, I believe Visa should have a strong positive earnings but what would be a decisive factors of how much is the growth would be the TPV.

If TPV is positive and better than last quarter, it would also help to eliminate some of the signals of a bearish reversal presented by the Technical Analysis.

Technical Analysis has given a rather conflicting view, though we can see that price movement on SMA is gearing towards a bull trend.

But ADX and SAR is showing of a bearish reversal potential. This could be triggered by events before the earnings release, or the earnings release itself.

I will monitor and see how it will trade on 25 Jul to see market reaction.

Appreciate if you could share your thoughts in the comment section whether you think Visa would post a better than TPV (Total Payment Volume) of 8.5% year-on-year percentage change (in Q1 2023).

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.