Visa destroys revenue; Mastercard at the push of a button

Visa (V) surpassed the fourth quarter result with the competing payment giant on Tuesday evening MasterCard (MA) publishes its third quarter results early Thursday. But Visa and Mastercard stocks fell.


Jefferies analysts said in a October 22 statement to customers that they expect subdued results due to the Covid-19 delta spike in August and a slowdown in e-commerce.

“For Visa, we anticipate the greatest growth in computing revenue from higher-end transactions, driven by a steady recovery in cross-border (activity),” wrote analyst Trevor Williams.

Visa receipts

Estimates: FactSet analysts expected Visa earnings per share of $ 1.55 for the fourth quarter, 38% up on the year-ago quarter. Earnings per share for the full year rose 15% to $ 5.81.

Revenue for the quarter rose 28% year-over-year to $ 6.52 billion to cap the year at $ 24.06 billion, an annual increase of 10%.

Results: Visa reported earnings of $ 1.62 per share, up 45% from the year-ago quarter, on revenue of $ 6.6 billion, an increase of 29%. Earnings per share were $ 5.91 while sales rose 10% to $ 24.1 billion.

“Our performance was driven by the continued recovery in many global economies and the increased diversification of our revenues with new flows and value-added services,” said Alfred Kelly, CEO of Visa. “Looking ahead, Visa is even better positioned for the future as cross-border travel is recovering and we are driving the rapid growth of digital payments and enabling innovations in global monetary transactions.”

Payment volume increased 17% in the quarter and 16% in 2021 as a whole. Cross-border volume grew 38% in the fourth quarter and 9% over the year. Transactions processed increased 21% for the quarter and 17% for the year.

In July, the Dow Jones giant ventured into the Buy now – pay later Domain, in the footsteps of PayPal (PYPL) and some others. The program is called Visa Installment Solution. But unlike PayPal and other BNPL providers who screen consumers for creditworthiness, Visa does not conduct a risk assessment of whether installment loans are granted to credit card issuers.

Visa dipped his toe too NFTs. In August, it bought a CyberPunk, a non-fungible token of a digital work of art, for about $ 150,000 in Ethereum.

Visa warehouse

Visa stock fell nearly 4% in after-hours trading after initially rising.

Stocks fell 0.9% to 231.83 on Tuesday Stock exchange trading. Visa share is in a flat floor with a Buy point of 252.77, after MarketSmith.

Visa relative strength line trending down. It is RS rating is 50 out of 99 possible while there EPS rating is 78. Both are below the 80 IBD recommendations.

rival Mastercard share declined 2% late after falling 1% to 357.05. The relative strength line also collapses, near all-time lows. Mastercard’s RS rating is only 37, while its EPS rating is 79.

Among other things, cash stocks square (SQ) rose 0.6% on Tuesday. Square enters the BNPL market through an upcoming $ 29 billion acquisition of AfterPay.

PayPal stock lost 1.6% on Tuesday after saying it wouldn’t buy Pinterest (PINS). PYPL stock was down 10% last week when the PINS acquisition was capitalized.

Mastercard earnings

Estimates: Analysts are expecting Mastercard earnings per share of $ 2.19, 37% more than a year ago. Revenue is estimated at $ 4.95 billion, an increase of 29% over the previous year.

Results: Please come back on Thursday.

Mastercard announced last month that it was Start of a BNPL program In the USA, called Mastercard Installment Payment, it is to be rolled out to other markets in the future.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.


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