Premarket trading on Wednesday saw Visa shares rise more than 5% after it reported adjusted Q2 EPS which exceeded consensus expectations.

Visa Q2 adjustedEPS of $1.79 was up from $1.38 during the prior year, and higher than analyst consensus at $1.65 per share. Revenues grew 26% YoY to $7.2 Billion, which is higher than the estimate of $6.83 Billion.

According to analyst estimates, Visa recorded $2.78 trillion in total payment volume. According to analyst expectations, the total Visa processed transactions grew 19% YoY.

The provider of financial services expects growth, despite increasing geopolitical tensions. It is driven by strong tourism recovery and the ability to use traditional and new methods of payment globally.

In addition to $127 Million of losses due to equity investments, 40 million for amortization of acquired immaterial assets and other non-recurring acquisition costs and 60 million charges arising from Russia-Ukraine, the financial report included $60M in charges.

Morgan Stanley analyst James Faucette increased the price target from $279.00 to $284.00.

“Rapid travel recovery and still limited impact from inflation/supply chain issues drives EPS ests 2% higher in ’22/’23. Stay OW and PT to $284 though investors may need time to gain confidence the recovery can stay on track,” Faucette said in a client note.

Bank of America analyst Jason Kupferberg says there’s “lots to like in FQ2 print.”

“Despite somewhat elevated expectations heading into the print, we believe the magnitude of V’s beat will be enough to move the shares higher tomorrow,” Kupferberg wrote to clients.

By Senad Karaahmetovic