Visa Vs. Mastercard Q2 Earnings Preview: Analyst Evaluates Credit Card Giants' Stability, Regulatory Pressures
Portfolio Pulse from Surbhi Jain
Visa and Mastercard are set to report their Q2 earnings later this month. Despite a recent downturn in stock prices, JPMorgan analyst Tien-tsin Huang remains optimistic about their stability and growth potential. Visa is expected to show decelerated growth but stability, while Mastercard may exceed guidance. Regulatory and macroeconomic challenges are acknowledged, but both companies are seen as resilient.
July 19, 2024 | 2:44 pm
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NEGATIVE IMPACT
Bank of America has shown a slight deceleration in card volume trends, which may impact its performance. This is noted in the context of Visa and Mastercard's pre-earnings data.
The slight deceleration in card volume trends for Bank of America could negatively impact its performance, leading to a potential short-term decline in stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
JPMorgan Chase has shown a slight deceleration in card volume trends, which may impact its performance. This is noted in the context of Visa and Mastercard's pre-earnings data.
The slight deceleration in card volume trends for JPMorgan Chase could negatively impact its performance, leading to a potential short-term decline in stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Visa is expected to report Q2 earnings on July 23 with decelerated growth but overall stability. Analyst Tien-tsin Huang anticipates 9% reported growth, slightly below Street estimates, but believes reiterating full-year guidance should suffice.
Visa's expected decelerated growth and stability, along with the analyst's projection of 9% growth, suggest a neutral short-term impact. Reiterating full-year guidance should maintain investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Mastercard is set to report Q2 earnings on July 31 and is expected to perform slightly better than Visa. Analyst Tien-tsin Huang projects Mastercard's revenue to hit the high end or exceed guidance, citing pricing and issuer wins.
Mastercard's potential to exceed guidance and the positive outlook from the analyst suggest a likely short-term positive impact on the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100