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Visa (V) released quarterly results Thursday evening. Fellow Credit Card Giant Dow Jones American Express (AXP) rose in its outlook early Friday. Capital One Financial (COF) reported a large earnings miss Thursday afternoon. AXP shares rose early Friday, while V shares retreated and COF shares faded.
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American Express
American Express reported a 27% profit increase to $2.62 per share, slowing slightly after two quarters of accelerated growth. Total income net of interest expenses rose 11% to $15.8 billion, and revenue growth slowed for the third consecutive quarter.
FactSet analysts expected earnings of $2.64 per share on $16 billion in revenue.
Full-year earnings rose 14% to $11.21 per share, while revenue rose 14% to $60.52 billion, compared with views of $11.26 per share on $60.73 billion in income.
American Express guided 2024 earnings between $12.65 and $13.15 per share, while revenue rises between 9% and 11%. The outlook beat FactSet predictions of $12.38 per share and revenue growth of 9.1% to $66.23 billion.
American Express rose 3% early Friday. Shares rose 1.2% on Thursday. The AXP stock chart is quite similar to that of the major COFs. It is extended after a breakage of the base of the cup with handle on December 14. And it is recovering from support at its 10-week moving average.
Visa Stock
Visa reported adjusted earnings of $2.41 per share, up 11% from last year, with revenue growing 9% to $8.63 billion.
Analysts surveyed by FactSet expected earnings growth of 7.4% to $2.34 per adjusted share. Wall Street saw revenue growth of 7.9% to $8.55 billion.
Visa averaged 11.5% revenue growth over the past four quarters. Earnings growth ranged from 9% to 21% during that period.
Payment volume grew 8% year over year, exceeding FactSet’s forecast of 7.7% growth. Payment volume for the quarter improved from 1.7% last year, but decreased from 9.4% in the fourth quarter. The volume of cross-border payments, excluding intra-European ones, increased by 16%, well above expectations for a growth of 9.8%.
Transactions processed increased 9% in the quarter.
Visa guided second-quarter earnings growth in the high teens with revenue growth in the mid- to high-single digits. Payments giant Dow Jones expects fiscal 2024 earnings to rise in the low 10% range thanks to low double-digit revenue growth.
FactSet forecasts second-quarter earnings growth of 14% to $2.34 per share and revenue growth of 8.6% to $8.68 billion.
On Wednesday, Visa announced its first major global sports sponsorship in more than 15 years by signing as a partner of 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 renamed Visa Cash App RB Formula One Team. A full presentation will take place in Las Vegas on February 8 ahead of the start of the 2024 F1 season on February 29.
Visa shares fell nearly 3% early Friday. Shares rose a fraction in trading Thursday ahead of the results. Visa extends after a mid-November breakout from a cup base.
V shares are up 4.7% year to date through Thursday, and are up 19% since their October low.
capital one
Capital One reported a 20.6% drop in fourth-quarter adjusted earnings to $2.24 per share, missing FactSet expectations of $2.65 per share. Total revenue growth slowed for the second straight quarter, rising 5% to $9.5 billion and just beating forecasts of $9.49 billion.
Capital One’s GAAP earnings fell 63% to $1.67 per share versus estimates of $2.56 per share.
Full-year adjusted earnings fell 29.3% to $12.52 per share, while 2023 revenue rose 7% to $36.79 billion. Wall Street anticipated earnings of $13.83 per share on $38.37 billion in revenue.
COF shares fell 1.4% Friday morning, erasing their 1.1% gain during Thursday market hours. Shares are trading in a profit-taking zone above a cup-and-handle base. Shares are also recovering from a test of support at the stock’s 10-week moving average.
You can follow Harrison Miller for more stock news and updates on X/Twitter. @IBD_Harrison
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