Visa stock (V) has had an incredible run. Visa was out with earnings recently and the Street is pushing the stock to new all-time highs. This is because the Street has been baking into the stock prices ongoing beats against consensus estimates, with its multiple approaching 41 times trailing earnings:

Right now, the stock is at 52-week highs, again, and flirting with going higher as we write. Visa is up about 35% from where we recommended it at $82.50 a share. Is the sky still the limit? With the exceptional growth the name is showing, the valuation has been justified. The question is, can this run continue? In this column, we examine trends in sales and earnings and discuss our expectations looking ahead for Visa.

Top line growth

The just-reported quarter saw another impressive top line for Visa, with solid increases over the past three years.

Well, once again the company delivered a strong report, and revenues were stellar. The results indicate that the company will continue its stable and reliable growth. Net revenue for the quarter came in at $4.86 billion, a 14% increase over Q4 2016. This was primarily due to a 10% jump in payment dollar volume and a 13% increase in processed transactions to approximately 29.2 billion. Transaction growth continues to grow significantly.

This growth is pretty sizable for a long-standing company like Visa. So once again, revenues were up nicely on the back of transactions increasing. What is most impressive for us is that our expectations were surpassed with authority top line.

We were looking for $4.79 billion, or a 12.4% gain over last year. Because both dollar payment volumes and transactions were well above our 8 and 11% projections respectively, revenues surpassed what we were looking for. This is a major sign of strength. However, with such a significant jump in revenue, we need to question whether….EXPAND FULL COLUMN NOW

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