Visa (V) released its quarterly results on Thursday, while fellow Dow Jones credit card giant American Express (AXP) saw a surge in its outlook on Friday. Capital One Financial (COF) reported a major earnings miss on Thursday afternoon, with AXP stock surging and V stock retreating but COF shares fading.
American Express
American Express reported a 27% increase in earnings to $2.62 per share, showing a slight slowdown after two quarters of faster growth. Total revenue, excluding interest expense, went up by 11% to $15.8 billion, with revenue growth slowing down for the third consecutive quarter. FactSet analysts had anticipated earnings of $2.64 per share on $16 billion in revenue.
For the full year, earnings rose by 14% to $11.21 per share, while revenue climbed by 14% to $60.52 billion, compared to expectations of $11.26 per share on $60.73 billion in revenue. American Express provided a 2024 earnings guidance in the range of $12.65-$13.15 per share, with a revenue increase of 9% to 11%, surpassing FactSet predictions of $12.38 EPS and 9.1% revenue growth to $66.23 billion.
American Express saw a 3% surge early on Friday. Shares had risen by 1.2% on Thursday and its stock chart resembled that of COFs, having broken out of a cup-with-handle base on Dec. 14 and rebounding from support at its 10-week moving average.
Visa Stock
Visa reported adjusted earnings of $2.41 per share, marking an 11% increase from the previous year, on a 9% revenue growth to $8.63 billion. Analysts surveyed by FactSet had expected earnings to grow by 7.4% to $2.34 per share adjusted, with a projected revenue growth of 7.9% to $8.55 billion. Visa had an average revenue growth of 11.5% over the last four quarters, and its earnings growth fluctuated between 9% and 21% in that period. The payments volume increased by 8% year-over-year, surpassing FactSet forecasts of 7.7% growth.
Visa provided guidance for Q2 earnings growth in the high teens, with upper-mid to high single-digit revenue growth. The company expects fiscal 2024 earnings to rise in the low-teen percentage range on low double-digit revenue growth. FactSet forecasts indicated a 14% Q2 earnings increase to $2.34 per share on 8.6% revenue growth to $8.68 billion. Visa stock fell by nearly 3% early on Friday, having risen slightly during Thursday trade ahead of the results. Visa is extended after breaking out from a cup base in mid-November.
Capital One
Capital One experienced a 20.6% drop in Q4 adjusted earnings to $2.24 per share, falling short of FactSet expectations of $2.65 per share. Total revenue growth decelerated for the second consecutive quarter, increasing by 5% to $9.5 billion, just beating forecasts of $9.49 billion. The company’s GAAP earnings plummeted by 63% to $1.67 per share compared to estimates of $2.56 per share. Full-year adjusted earnings declined by 29.3% to $12.52 per share, while 2023 revenue increased by 7% to $36.79 billion, missing the anticipated earnings of $13.83 per share on $38.37 billion in revenue.
COF stock slipped by 1.4% on Friday morning, erasing its 1.1% gain during Thursday market hours. Shares are trading in a profit-taking zone above a cup-with-handle base and are 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
