Visa (V) swiped its earnings card only to find out that it’s been rejected.
Bloomberg The credit-card company said it earned $2.20 cents a share, beating forecasts for $2.18, on sales of $3.16 billion, below the Street consensus for $3.19 billion. Visa also said that revenue would slow during the second quarter as a result of sanctions imposed on Russia and a stronger dollar.
Jefferies’ Jason Kupferberg and team call Visa’s results a ‘modest bump in the road” but remain optimistic:
Shares of V will understandably trade lower…given: 1) narrowing of net rev growth guidance to the lower part of the range, 2) slightly more softening in x-border volume growth, 3) uncertainty re Russia, 4) obtuse messaging around tax rate guidance. However, we were encouraged by recovery in most all April metrics and higher operating margin guidance. The long-term story is intact.
Top 10 High Dividend Companies To Watch In Right Now
The uncertainty around Russia could also weigh on MasterCard’s (MA) results when it releases earnings on May 1, Kupferberg says.
Shares of Visa have dropped 4.1% to $200.82 at 2:38 p.m., while MasterCard has fallen 4.2% to $71.25. Visa’s drop is also weighing heavily on the Dow Jones Industrial Average, thanks to its big drop, which is more than twice the size of Intel’s (INTC) 1.7% decline and Goldman Sachs’ (GS) 1.6% fall put together, and having the highest price in the price-weighted Dow. The Dow has fallen 0.8% to 16,362.27.
No comments:
Post a Comment