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- Network payment processing companies - Mastercard (NYSE:MA) and Visa (NYSE:V) are scheduled to announce Q4 and FQ1 earnings results respectively on Thursday, January 27th, before market open.
- MA: The consensus EPS Estimate is $2.21 (+34.8% Y/Y) and the consensus Revenue Estimate is $5.17B (+25.5% Y/Y).
- Mastercard's earnings are seen impacted by high levels of cost under rebates and incentives that the company has incurred during the quarter, which would thereby impact margins.
- Over the last 3 months, Mastercard EPS estimates have seen 12 upward revisions and 14 downward. Revenue estimates have seen 11 upward revisions and 12 downward.
- V: The consensus EPS Estimate is $1.70 (+19.7% Y/Y) and the consensus Revenue Estimate is $6.79B (+19.1% Y/Y).
- Over the last 3 months, Visa EPS estimates have seen 6 upward revisions and 16 downward. Revenue estimates have seen 3 upward revisions and 16 downward.
- Quick look at both the companies' revenue performance in past 3-years in comparison with PayPal:
- With consumer and cross-border spending rising amid a reopening and recovering global economy, Visa is seen reporting significant growth in revenue and net income.
- Visa said cross-border volumes, excluding inside Europe, were still at just 85% of pre-pandemic levels in the last quarter contrasting to Mastercard, which saw cross-border spending return to pre-pandemic levels in the same period.
- Over the last 2 years, MA and V have beaten EPS estimates 88% of the time and have beaten revenue estimates 88% and 75% of the time respectively.
- In mid-January, Mastercard CEO indicated that 2022 retail sales stay relatively positive while SA Contributor Khen Elazar recently said that with volatility up 50%, Mastercard should be on your watchlist.
- In its latest moves, Visa introduced Visa Acceptance Cloud, which enables any POS or connected device to accept payments and to incorporate a range of added services.
- SA Contributor JR Research provides What to consider for 2022 in its Visa stock forecast.
- Peer company, American Express beat Q4 EPS and beat revenue by a significant $600M.
- In the past 6-months, MA has lost 13.9% while Visa eroded 19%; ahead of its earnings MA and V have gained ~4% in day's trading; MA is trading at the midpoint price of its 52-week high and 52-week low, while V is trading closer to 52-week low.