Visa (V) posted quarterly results late Thursday with fellow Dow Jones credit card giant American Express (AXP) on tap early Friday. Capital One Financial (COF) reported a big earnings miss Thursday afternoon. V stock retreated while COF shares ticked lower in late Thursday trade.
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Visa Stock
Visa reported adjusted earnings of $2.41 per share, up 11% from last year, on 9% revenue growth to $8.63 billion.
Analysts surveyed by FactSet expected 7.4% earnings growth to $2.34 per share adjusted. Wall Street saw 7.9% revenue growth to $8.55 billion.
Visa averaged 11.5% revenue growth over the last four quarters. Earnings growth ranged from 9% to 21% during that period.
Payments volume grew 8% year-over-year, edging out FactSet forecasts of 7.7% growth. Payments volume for the quarter improved from 1.7% last year but declined from 9.4% in Q4. Cross border payments volume, excluding intra-Europe, increased 16%, well above views of 9.8% growth.
Processed transactions rose 9% for the quarter.
Visa guided Q2 earnings growth in the high-teens on upper-mid to high single-digit revenue growth. The Dow Jones payments behemoth expects fiscal 2024 earnings to rise in the low-teen percent range on low double-digit revenue growth.
FactSet forecasts a 14% Q2 earnings increase to $2.34 per share on 8.6% revenue growth to $8.68 billion.
On Wednesday, Visa announced its first major global sports sponsorship in more than 15 years by signing on as a partner for both Red Bull Formula 1 racing teams. As part of the more than 15-year agreement, the Red Bull-owned Scuderia AlphaTauri team has been rebranded to Visa Cash App RB Formula One Team. A full unveiling will take place in Las Vegas on Feb. 8 ahead of the start of the 2024 F1 season on Feb. 29.
Visa stock fell 3% Thursday. Shares rose a fraction during trade ahead of results. Visa is extended after a mid-November breakout from a cup base.
V stock surged 4.7% so far this year through Thursday, and is up 19% from an October low.
Capital One
Capital One reported a 20.6% drop in Q4 adjusted earnings to $2.24 per share, missing FactSet expectations of $2.65 per share. Total revenue growth slowed for the second quarter in a row, rising 5% to $9.5 billion and just beating forecasts of $9.49 billion.
Capital One’s GAAP earnings tumbled 63% to $1.67 per share vs. estimates of $2.56 per share.
Full-year adjusted earnings fell 29.3% to $12.52 per share while 2023 revenue increased 7% to $36.79 billion. Wall Street anticipated earnings of $13.83 per share on $38.37 billion in revenue.
COF stock slipped 1.4% late Thursday, erasing its 1.1% gain during market hours. Shares are trading in a profit-taking zone above a cup-with-handle base. Shares are also rebounding from a test of support at the stock’s 10-week moving average.
American Express
American Express reports Q4 results early Friday. FactSet predicts earnings of $2.64 per share, up 27% from last year but slowing slightly after two quarters of accelerating growth. Analysts expect revenue growth to slow for the third consecutive quarter, increasing 12% to a record $16 billion.
AXP’s stock chart is fairly similar top COFs. It is extended after a cup-with-handle base breakout on Dec. 14. And it is rebounding from support at its 10-week moving average.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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