Visa decline after earnings; Capital One fades at a big miss; American Express on deck

visa (V) posted quarterly results late Thursday with credit card giant Dow Jones American Express (AXP) early Friday. Capital One Financial (COF) reported a big loss in earnings on Thursday afternoon. V shares fell while COF shares fell in late trading Thursday.

X

Visa stock

Visa reported adjusted earnings of $2.41 per share, up 11% from a year ago, with revenue growing 9% to $8.63 billion.

Analysts surveyed by FactSet expected earnings to grow 7.4% to $2.34 per adjusted share. Wall Street saw revenue grow 7.9% to $8.55 billion.

Visa’s revenue growth has averaged 11.5% over the past four quarters. Earnings growth ranged from 9% to 21% during that period.

Payment volume grew 8% year over year, beating FactSet expectations of 7.7% growth. Payment volume for the quarter improved from 1.7% last year but declined from 9.4% in the fourth quarter. The volume of cross-border payments, excluding within Europe, rose by 16%, well above growth expectations of 9.8%.

Processed transactions increased 9% during the quarter.

Visa guided second-quarter earnings growth in the high teens to mid- to high-single-digit revenue growth. Payments giant Dow Jones expects fiscal 2024 earnings to rise in the low 10% range on low-double-digit revenue growth.

FactSet expects second-quarter earnings to increase 14% to $2.34 per share with revenue growing 8.6% to $8.68 billion.

Visa on Wednesday announced its first major global sports sponsorship in more than 15 years by signing on as a partner of two Red Bull Formula 1 racing teams. As part of the agreement spanning more than 15 years, the Red Bull-owned Scuderia AlphaTauri team has been rebranded as Visa. Cash App RB Formula One Team. The car’s full reveal will take place in Las Vegas on February 8 ahead of the start of the 2024 Formula 1 season on February 29.

Visa stock fell 3% on Thursday. Shares rose slightly during pre-results trading. The visa is extended after the mid-November exit from the Cup base.

V stock is up 4.7% so far this year through Thursday, and is up 19% from its October low.

Capital One

Capital One reported a 20.6% decline in fourth-quarter adjusted earnings to $2.24 per share, beating the FactSet forecast of $2.65 per share. Total revenue growth slowed for the second straight quarter, rising 5% to $9.5 billion, beating expectations of $9.49 billion.

Capital One’s GAAP earnings fell 63% to $1.67 per share versus 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 expected earnings of $13.83 per share on revenue of $38.37 billion.

COF stock fell 1.4% late Thursday, erasing a 1.1% gain during market hours. The stock is trading in a take profit zone above a cup with handle base. Shares are also rebounding from testing support at the stock’s 10-week moving average.

American Express

American Express reports fourth-quarter results early Friday. FactSet expects earnings of $2.64 per share, up 27% from a year ago but slowing slightly after two quarters of accelerating growth. Analysts expect revenue growth to slow for the third straight quarter, increasing 12% to a record $16 billion.

The AXP stock chart is very similar to the top COFs. It was extended after the base of the cup was penetrated with a handle on December 14. It is rebounding from support at its 10-week moving average.

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

You may also like:

Best Growth Stocks to Buy and Watch: See updates to IBD stock lists

Looking for the next big winners in the stock market? Start with these three steps

Join IBD Live and learn the best chart reading and trading techniques from the pros

Learn how to time the market with IBD’s ETF market strategy