Avner Ziv

Fee gateway agency Visa Inc (NYSE: V) is ready to report its third quarter 2019 earnings outcomes coming Tuesday after the market closes. On common, analysts predict the corporate to earn $1.32 per share on income of $5.7 billion. This represents year-over-year development of 10% within the earnings and 9% within the income. Visa inventory reached a brand new all-time excessive ($181.84) when it opened in the present day and ended the day down 0.71% at $179.24.

As soon as once more, Visa’s Q3 outcomes are anticipated to profit from the continued development within the processed transactions, funds quantity and cross-border quantity, due to elevated shopper spending. The corporate had surpassed earnings estimates previously 4 quarters.

Wanting Again

For the second quarter ended March 31, 2019, Visa earned $1.31 per share on income of $5.5 billion. Whereas earnings beat estimates, income was in keeping with the consensus views. On a nominal foundation, processed transactions and funds quantity grew 11% and 4%, respectively. Cross-border quantity dropped 2%.


Visa had projected third quarter internet income development to be just like reasonably higher than the second quarter. Third quarter expense development is touted be in keeping with the second quarter.

Fourth quarter internet income is projected to develop within the low double-digit vary. Bills within the fourth quarter are anticipated to develop on the lowest charge for the 12 months.

Web income development expectations maintained at low double digits on a nominal foundation and expense development expectations remained within the mid-single digits. The corporate lifted its EPS development expectations to the excessive finish of mid-teens on an adjusted non-GAAP nominal greenback foundation and the low 20s on a GAAP nominal greenback foundation.

Latest Developments

Visa received the battle with its competitor Mastercard (NYSE: MA) on buying the UK-based Earthpost in Could. Earthport gives cross-border fee companies to banks, cash switch service suppliers and companies through the world’s largest unbiased ACH community.

In June, Visa acquired the token companies and ticketing companies from Rambus (NASDAQ: RMBS) and signed a definitive settlement to amass Verifi, a pacesetter in expertise options that scale back chargebacks. On Wednesday, the San Francisco-based agency acquired Payworks, a Munich-based supplier of next-generation fee gateway software program for the Level of Sale (POS).

Learn: American Categorical Q2 outcomes beat on robust card member spending; reaffirms FY19 outlook

On June 11, Visa launched Visa B2B Join community globally. This may allow monetary establishments to rapidly and securely course of high-value company cross-border funds everywhere in the world. The Visa B2B Join launch will cowl greater than 30 international commerce corridors, with an intention to broaden to as many as 90 markets by the tip of 2019.

Visa’s Views on US Financial system

Visa sees extra draw back dangers to development than upside over the subsequent two years. Whereas tariffs on Mexico have been averted, there stays a threat of additional tariffs on imports from China. This might create a problem for the Fed in attempting to stability job development and hold inflation in verify.

Learn: Visa Q2 Earnings Name Transcript

Manufacturing is prone to proceed to bear the brunt of any new tariffs and gradual the expansion of shopper spending on such items. Within the near-term, Visa reported that it expects increased inflation readings from the beginning of the third quarter of this 12 months.


Visa’s peer American Categorical (NYSE: AXP) reported its second quarter outcomes in the present day. One other digital fee large Mastercard (NYSE: MA) will launch its second-quarter 2019 monetary outcomes on July 30.

Inventory Motion

Visa inventory had given a constructive return of 36% up to now this 12 months whereas Mastercard’s inventory worth had jumped 46% in the identical interval. Prior to now 12 months, shares of Visa and Mastercard have grown 28% and 34%, respectively.

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