Fri, Jul. 1, 5:36 PM
Thu, Jun. 30, 11:49 AM
- Visa (V -2.2%) and MasterCard (MA -1.8%) move lower after the 2nd U.S. Circuit Court of Appeals rejects the 2012 settlement with retailers over credit card fees, calling the agreement “unreasonable and inadequate."
- The decision nullifies the settlement - billed at the time as the largest settlement of an antitrust class action case in U.S. history, and valued at the time at $7.25B - that resolved claims that the card networks overcharged merchants on swipe fees, when shoppers used credit or debit cards, and banned them from encouraging customers to use cheaper means of payment.
- One class of merchants that had accepted Visa or MasterCard during 2004-12 was to share in the $7.25B, while a second class accepting the cards after 2012 would get injunctive relief in the form of rule changes; the court ruled that the two classes should not have been represented by the same lawyers and that the second group was not adequately represented in the litigation.
Wed, Jun. 29, 3:19 PM
- Visa (V +2%) accuses Wal-Mart (WMT +1.2%) of secretly configured its payment terminals so only PINs could be used, after receiving complaints from customers who said they could no longer use their debit cards at WMT stores unless they had a PIN.
- Visa says WMT's actions violate the contract the companies had negotiated in which it told WMT that customers must be given the choice of using a signature; WMT sued Visa over the issue last month, saying PINs are more secure than signatures.
- Visa says WMT never told it that the signature choice had been eliminated, finding out only after noticing “a significant drop” in its debit transactions at WMT stores.
- Visa's rules are different than those of MasterCard (MA +1.9%), which lets merchants decide how they want customers to verify payments, WSJ reports.
Tue, Jun. 28, 3:00 PM
Fri, Jun. 24, 12:28 PM
- Brexit is bad news for Visa (V -3.1%) and MasterCard (MA -3.8%), Sandler O’Neill says, seeing slowing overall GDP growth ahead for Europe at a time of already weak European growth, meaning that spending on Visa and MasterCard networks will slow.
- The firm cites four major downsides for card networks following the vote: slower consumer spending, less cross-border activity, forex headwinds to earnings in the U.K. and EU, and slower migration from cash to digital payments.
- The timing of Visa’s acquisition of Visa Europe now looks unfortunate, and guidance for the deal to be accretive to EPS in the high single digits in coming years could drop into the mid-single digits post-Brexit, the firm says.
Oct. 29, 2015, 8:01 AM
- MasterCard (NYSE:MA): Q3 EPS of $0.91 beats by $0.03.
- Revenue of $2.53B (+1.2% Y/Y) in-line.
- Shares +1.4% PM.
Sep. 9, 2015, 9:18 AM
- Management with MasterCard (NYSE:MA) is presenting today at an investor meeting.
- In early comments, the company tips that it sees high single-digit revenue in 2015 including 2 percentage points of growth from acquisitions. Operating expenses are also seen rising at a high single-digit rate. The impact of F/X fluctuations is estimated at six to eight points of growth.
- MasterCard presentation slides (.pdf)
- MA -1.85% premarket to $91.18.
Jul. 29, 2015, 8:27 AM
- MasterCard (NYSE:MA) reports revenue was 7% higher in Q2 on a constant dollar basis. F/X swings ended up reducing revenue by six percentage points to 1% growth (Visa +11.5% on a roughly overlapping quarter).
- Acquisitions contributed two percentage points to revenue growth.
- Cross-border volume was up 17% during the quarter.
- Gross dollar volume +13% to $1.1T (constant currency).
- Processed transactions +15.6% to 12.0B
- Total operating expenses +11% to $1.139B.
- Operating margin of 52.4% reported on an actual basis and 54.9% on a non-GAAP basis.
- MasterCard's effective tax rate in Q2 was 25.8% vs. 32.25 a year ago due in part to a large repatriation benefit.
- Previously: MasterCard EPS and revenue in-line
- MA -2.27% premarket to $93.29.
Apr. 29, 2015, 8:57 AM
- MasterCard (NYSE:MA) reports revenue rose 8% after adjusting the currency impact.
- Gross dollar volume +12% to $1.1T.
- Cross-border volume +19%.
- Processed transactions +12% to 11B.
- Worldwide purchase volume was up 12% to $783B.
- Operating margin rate increased 142 bps to 60.58%.
- A standout from the quarter was the effective tax rate paid by the company of 23.9% vs. 32.0% a year ago.
- MA +1.15% premarket.
- Q1 results
Apr. 29, 2015, 8:02 AM
- MasterCard (NYSE:MA): Q1 EPS of $0.89 beats by $0.09.
- Revenue of $2.23B (+2.8% Y/Y) misses by $50M.
- Shares +1.96% PM.
Apr. 22, 2015, 11:35 AM
- Morgan Stanley is out with a new note covering the impact of China opening up competition for bank card clearing services in the nation.
- The investment firm thinks Visa (V +5.9%) and MasterCard (MA +4.6%) could begin operations in China in late 2016 or early 2017.
- The development could add $336M to $360M in revenue for Visa and $224M to $240M for MasterCard by 2021.
- Shares of both payments stocks have ripped gains on strong volume.
- Previously: Door opens for MasterCard and Visa in China
Apr. 22, 2015, 10:33 AM
- MasterCard (MA +3.4%) and Visa (V +4%) shoot higher after China opens up bank card processing to foreign firms.
- The companies will have the ability to enter the market on June 1 through local partnerships/units or acquisitions.
- The development was tipped last fall, but the Chinese government just issued the official rules today.
Apr. 17, 2015, 11:02 AM
- "If any doubt remained, it is very clear that dollar strength is a major problem right now for large multinationals," says Topeka, after going over American Express' (AXP -4.5%) Q1 results, and noting the corporate card business slowdown wasn't isolated to any particular industry.
- AmEx, notes the team, has 31% of its volume outside of the U.S. and is highly dependent on cross-border and business-related travel. 'This reads negatively for Mastercard (MA -1.4%), and, less so, Visa (V -1.4%)."
- AmEx earnings call transcript and presentation slides.
- Previously: AmEx beats on bottom line, but outlook still dour (April 16)
Feb. 19, 2015, 12:07 PM
- "The court's ruling will not provide any benefit to consumers and will, in fact, harm competition by further entrenching the two dominant networks," says American Express (AXP -2.2%), responding to its loss in an antitrust lawsuit, and vowing to appeal.
- Filed in 2010 and heard by a federal judge last year, the case is about AmEx's prohibiting merchants who accept its cards from steering customers towards those cards processed by rivals Visa (V +0.3%) and MasterCard (MA +1.7%), or debit cards.
- “The most damaging thing that can happen to the American Express brand is when our card members are discriminated against at the point of sale,” said company CEO Ken Chenault when he testified at last year's trial.
- It's another 2015 blow for AmEx which last week announced an end to its long-time exclusive partnership with Costco in the U.S. The stock's now lower by about 16% YTD.
- Previously: AmEx lower by 1.9% after losing antitrust suit (Feb. 19)
Jan. 30, 2015, 8:21 AM
- MasterCard (NYSE:MA) reports net income rose 21% in Q4, adjusted for currency swings.
- Acquisitions had a $0.03 dilutive impact on EPS during the quarter.
- Gross dollar volume +13% to $1.2T.
- Cross-border volume +19%.
- Processed transactions +11% to 11.6B.
- A standout from the quarter was the effective tax rate paid by the company of 20.3% vs. 32.0% a year ago.
- MA +3.83% premarket.
Jan. 30, 2015, 8:03 AM
- MasterCard (NYSE:MA): Q4 EPS of $0.69 beats by $0.02.
- Revenue of $2.42B (+13.6% Y/Y) beats by $30M.
- Shares +3.2% PM.
MasterCard, Inc. is a technology company, which is engaged in the global payments industry. It connects consumers, financial institutions, merchants, governments and businesses worldwide, enabling them to use electronic forms of payment instead of cash and checks. The company also offers a wide... More
Industry: Business Services
Country: United States
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