Jul. 24, 2014, 4:27 PM
- FQ3 net income of $1.4B up 11% Y/Y, with EPS of $2.17 up 15%; net operating revenue of $3.2B up 7% on constant dollar basis.
- Payments volume growth in FQ3 of $1.2T up 11% on a constant dollar basis (was up 12% in FQ2).
- Cross-border volume growth up 7%.
- Total processed transactions of 16.7B, up 11%.
- Total operating expenses of $1.1B off 3%.
- 5.6M shares repurchased during Q at average price of $207.13 each using $1.2B of cash on hand. An additional $1.9B of funds remains available for additional purchases.
- Full-year outlook is affirmed: Revenue growth of 9-10% with an expectation of 200 basis points of negative foreign currency impact; EPS growth of 17.5-18.5%.
- Conference call at 5 ET
- Previously: Visa beats by $0.08, beats on revenue
- V -2.6% AH
Jul. 24, 2014, 4:08 PM
Jul. 23, 2014, 6:10 PM
Jul. 18, 2014, 5:53 PM
- A U.S. district judge declines to dismiss antitrust lawsuits filed against Visa (NYSE:V) and MasterCard (NYSE:MC) by retailers who opted out of a ~$5.7B class action settlement in 2012 over transaction fees.
- The same judge in December approved the card companies’ settlement with a nationwide class of merchants in a lawsuit alleging antitrust claims over the fees, but several merchants including Target (NYSE:TGT) and Macy’s (NYSE:M) pursued cases after dropping out of the settlement.
- V and MC argued the lawsuits should be barred by legal releases in an earlier settlement in 2003 and because the merchants don’t directly pay fees to banks that issue V and MC branded cards.
Jul. 17, 2014, 4:13 AM| 2 Comments
Jul. 16, 2014, 2:59 PM
- Visa (V +0.3%) introduces a new product designed to make it easier for large companies to accept payments online.
- Visa Checkout will operate within a merchants website to shorten the checkout time for consumers.
- Lululemon, Live Nation, Pizza Hut, and Staples are some earlier adopters of the technology.
Jun. 19, 2014, 1:48 AM
- Russia says it will now lower the deposit requirements for Visa (V), MasterCard (MA), and other foreign card companies, after increasing their security deposits to 25% of their average daily turnover in May.
- The increase last month came after Russia faced sanctions over Ukraine, which required payment operators to pay a large security deposit to the central bank.
May. 23, 2014, 7:18 AM
- Visa (V) and Mastercard (MA) plan to remain in Russia despite a new law that increases their security deposits to 25% of their average daily turnover.
- The deposits will be paid to the Central Bank of Russia every quarter starting on July 1.
- The requirement looks like it could be retaliation for the West continuing to cautiously add to its sanctions against Russia.
May. 20, 2014, 1:40 PM
- Visa (V -1.4%) and MasterCard (MA -0.1%) only have six weeks to decide if a full exit from Russia is in their best interest despite the loss of revenue.
- The companies have to make the decision in the face of the creation of a payments network in the nation backed by the government and regulations which would require them to deposit "hundreds of millions" of dollars in collateral at the Russian Central Bank.
- Analysts note the real danger for the payments firms is that if Russia gets away with the collateral rule it could set a precedent in other emerging markets.
May. 19, 2014, 3:03 PM
- Visa (V +0.2%) CEO Charlie Scharf presented today at a JPMorgan tech and media conference with a positive spin on the state of the global consumer.
- Despite the obvious difficulties the company will have achieving its targeted growth rates in Russia and Venezuela, emerging markets and a payments acceleration in the U.S. should offset.
- On EMV chip implementation: Visa supports moving forward with the technology as a way to reduce fraud losses. The process will take "years," not months.
- Visa's margins might be maintained, but most likely won't be expanded as acquisitions and investments cut in.
- The company forecasts it will ultimately benefit from higher interest rates.
- JPMorgan Global Technology, Media & Telecom Conference webcast
Apr. 30, 2014, 2:20 PM
- MasterCard (MA +1.2%) could have a competitive advantage over rival Visa (V) as retailers look toward how to handle the adoption of EMV technology.
- The company's emphasis on using PINs over signatures could make it more attractive, according to Guggenheim Securities.
- Cases in point: Target awarded its REDCard portfolio to MasterCard over Visa and Wal-Mart picked it to handle its store-branded cards.
Apr. 25, 2014, 3:19 PM
- Visa (V -4.3%) sinks after beating Q1 earnings forecasts but warning that revenue would slow in Q2 due to sanctions imposed on Russia and a stronger dollar.
- But analysts largely remain upbeat for the longer term: Pacific Crest says Q1 results were hurt by "a series of idiosyncratic events," and growth should accelerate in H2 2014, while Stifel says underlying trends are strong and shares should outperform beginning in FY 2015.
- Jefferies calls the results a "modest bump in the road," encouraged by recovery in most April metrics and higher operating margin guidance, but notes that the uncertainty around Russia could weigh on MasterCard’s (MA -4.7%) results when it releases earnings on May 1.
- As the largest component of the Dow, Visa's stock price movement is having an outsized effect; DJIA -141.
Apr. 25, 2014, 10:31 AM
- Visa's (V -4.4%) FQ2 EPS of $2.52 flew past expectations of $2.18, but a disappointing outlook has the stock sharply lower in early action. Previous guidance had called for 2014 revenue growth of 10-13%, but Visa cut the top end of the range down to 11%.
- KBW's Sanjay Sakhrani says not only is this a disappointment, but the company included a $218M tax benefit in its full-year guidance, implying lower growth in H2 than originally hoped.
- Maintaining his Market Perform and $190-$210 PT, Wells' Timothy Willi expects the stock to remain rangebound thanks to those revenue concerns, slower crossborder action, and Russian concern (expected to reduce FY14 EPS by a several pennies). On the bullish side though, credit payments volume growth was a bit stronger, and U.S. PV growth has gotten better thus far this quarter (though Easter may have played a role).
Apr. 24, 2014, 4:10 PM
Apr. 23, 2014, 5:01 PM
Apr. 21, 2014, 10:28 AM
- Citi analysts post their list of 50 top Buy-rated stocks with a market cap of at least $3B, at least a top-three market share in a third of their businesses, and a global reach as measured by significant revenue outside of their home market; Business Insider highlights 20 according to estimated total return.
- Gilead Sciences (GILD) tops the list with a 45.4% ETR, and Citi believes GILD will generate a significant amount of cash and will buy back stock, engage in product and company acquisitions to grow its pipeline, and potentially start providing a dividend in 2-3 years.
- Rounding out the top 20: FB, BX, V, CERN, FLT, BA, MA, LVS, SBUX, MJN, GOOG, EBAY, BIIB, AXP, HOG, VFC, PII, VMC, FTI.
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