Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
HARRISON MILLER

Dow Jones Payments Giants Visa, American Express Diverge On Results, Capital One Rebounds

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.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.