Visa crushes winnings; Mastercard on tap
Jefferies analysts said in an Oct. 22 note to customers that they expected mixed results due to the Covid-19 peak delta in August and a deceleration in e-commerce.
âFor Visa, we expect the most significant increase in the processing of data on more processed transactions, driven by a steady recovery in cross-border activity,â wrote analyst Trevor Williams.
Estimates: FactSet analysts expected Visa earnings of $ 1.55 per share for the fiscal fourth quarter, 38% above the previous year quarter. Full-year EPS rose 15% to $ 5.81.
Revenue for the quarter increased 28% year-on-year to $ 6.52 billion, to close the year at $ 24.06 billion, an annual gain of 10%.
Results: Visa reported earnings of $ 1.62 per share, a 45% jump from last year’s quarter, on sales of $ 6.6 billion, an increase of 29%. EPS was $ 5.91 for the year, while revenue increased 10% to $ 24.1 billion.
âOur performance was driven by the continued recovery in many global economies and the further diversification of our revenues with new value-added flows and services,â said Alfred Kelly, CEO of Visa. âLooking ahead, Visa is even better positioned for the future as cross-border travel recovers and we continue to drive the rapid growth of digital payments and enable innovation in the movement of money at scale. global. “
Payment volume increased 17% for the quarter and 16% for 2021 as a whole. Cross-border volume jumped 38% in the fourth quarter and 9% for the year. Transactions processed increased 21% for the quarter and 17% for the full year.
In July, the Dow Jones giant ventured into the buy now-pay-later domain, following in the footsteps of Pay Pal (PYPL) and many others. The program is called Visa Versements Solution. But unlike PayPal and other BNPL providers, which monitor consumer creditworthiness, Visa will not perform risk assessment on whether to extend installment loans for credit card issuers.
Visa also dipped his toe into TVN. In August, he bought a CyberPunk, a non-fungible token of a digital artwork, for around $ 150,000 in Ethereum.
Visa stock fell nearly 4% in after-hours trading after initially rising.
Rival Mastercard shares was down 2% late after closing 1% lower at 357.05. Its line of relative strength is also collapsing, near all-time lows. Mastercard’s RS rating is only 37, while its EPS rating is 79.
PayPal stock lost 1.6% on Tuesday, after saying it wouldn’t buy Pinterest (PINS). PYPL stock fell 10% last week following the buzz of the PINS takeover.
Estimates: Analysts expect Mastercard earnings per share of $ 2.19, 37% higher than a year ago. Sales are expected to reach $ 4.95 billion, a 29% year-over-year increase.
Results: Come back Thursday.
Last month, Mastercard announced that it was also launch a BNPL program in Mastercard payments in the United States, it is expected to be extended to other markets in the future.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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