Visa posted quarterly results late Thursday. Fellow Dow Jones credit card giant American Express surged on its outlook early Friday. Capital One Financial reported a big earnings miss Thursday afternoon. AXP stock and COF shares surged Friday while V stock faded.
American Express
American Express reported a 27% earnings increase to $2.62 per share, slowing slightly after two quarters of accelerating growth. Total revenue net of interest expense rose 11% to $15.8 billion, with revenue growth slowing for the third consecutive quarter.
FactSet analysts expected earnings o $2.64 per share on $16 billion in revenue.
Full-year earnings increased 14% to $11.21 per share while revenue jumped 14% to $60.52 billion, compared to views of $11.26 per share on $60.73 billion in revenue.
American Express guided 2024 earnings between $12.65-$13.15 per share while revenue increases 9% to 11%. The outlook was ahead of FactSet predictions of $12.38 EPS and 9.1% revenue growth to $66.23 billion.
American Express leapt 7.1% Friday. Shares rose 1.2% Thursday. 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.
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 nearly 1.7% Friday. Shares rose a fraction during Thursday trade ahead of results. Visa is extended after a mid-November breakout from a cup base.
V stock rose 2.9% so far this year through Friday, and is up nearly 18% 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 rebounded 4.7% Friday after slipping in early trade. Shares rose 1.1% during Thursday market hours. Capital One is 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.
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