U.S. online media published an article analyzing how much money the Visa credit card brand can make per minute
24/7 Wall Street Network April 9, 2024 Trey Tolk's Finishing
Visa credit cards are one of the most popular credit cards in the world, accepted in more than 200 countries and territories. Visa operates one of the world's most advanced payment processing networks and has recently begun providing users with artificial intelligence tools. In addition, Warren Buffett, a well-known investor, has also held shares in the company for a long time.
Our focus is on how much money Visa can make per minute. Let's take a look.
How does Visa make money?
Visa's total revenue last year exceeded $32 billion.
The payment technology company was founded in 1958 and went public in the spring of 2008. The Company provides Visa-branded payment products to financial institutions, which are used by financial institutions to offer credit, debit cards, prepaid and cash deposit and withdrawal programs to customers. Visa is one of the most valuable companies in the world and is headquartered in San Francisco.
Of Visa's $32.7 billion in revenue last year, about $16 billion came from data processing and nearly $15 billion from services that support Visa payments. Visa's top three markets are the U.S. at 57.1%, the U.K. at 13.9% and Australia at 6.5%.
Here are the annual earnings and earnings per minute for the past five years:
Annual revenue per minute for the financial year
32.65 billion / $62,119.48 in 2023
$29.31 billion / $55,764.84 in 2022
202,124.11 billion US dollars / 45,871.39 US dollars
$21.85 billion / $41,571.54 in 2020
$22.98 billion / $43,721.46 in 2019
What is Visa's actual earnings?
Visa earned nearly $32,900 per minute last year.
Of course, income isn't everything. Net income, also known as profit or gain, is the remainder after deducting expenses such as cost of sales, taxes, and interest. In other words, it's the bottom line of the income statement, and revenue is the top line.
Over the past decade, Visa's top line has largely grown, as has its operating expenses. At the end of 2014, quarterly operating expenses totaled approximately $1.1 billion. More recently, the figure was close to $2.7 billion, though less than the $3 billion in the previous two quarters. In addition, Visa paid out about $3.2 billion in customer rewards last year. So, what impact does all of this have on a company's bottom line?
Here are the annual net income and net earnings per minute for the past five years:
Fiscal Year Annual Net Income/Net Income Per Minute
$17.27 billion / $32,857.69 in 2023
$202,214.96 billion / $28,462.71
$202,112.31 billion / $23,420.85
20201087000000000000000000000000000000000000000000000000000000000
$12.08 billion / $22,983.26 in 2019
How is Visa stock performing?
Visa stock recently hit an all-time high.
The stock was trading at around $50 a share a decade ago. Since then, Visa has risen more than 444% (split adjusted) and easily outperformed the market. Last month, its share price hit an all-time high of $290.96. The share price is also up about 6% compared to the beginning of the year, underperforming the S&P 500.
The consensus price target of $303.84 indicates that analysts see more than 10% upside in the coming year. The highest price target is $335. Of the 39 analysts who are following the stock, all but four recommend buying the stock now.