Dow Jones component Visa swung higher in late trade Thursday, set for new record highs, after clearing Q1 expectations. Payments giant Mastercard pushed to an all-time high after topping Q4 estimates early Thursday.
Visa Earnings On Deck
Visa reported a 14% increase in earnings to $2.75 per share adjusted. Revenue increased 10% to $9.5 billion.
FactSet expected earnings of $2.66 per share on $9.34 billion in revenue.
The Dow Jones firm saw its payments volume increase 9% for its first quarter. Cross-border volume rose 16% while processed transactions increased 11%.
Visa's Q2 guidance called for high-single digit earnings growth, with revenue growth ranging from the high single-digits to low double-digits.
The company expects full-year earnings grow in the low teens, with low double-digit revenue growth.
Elsewhere, Visa on Tuesday announced a new partnership with X, as part of Elon Musk's effort to turn the social media platform into an "everything app."
The new financial feature, called X Money Account, will allow users to complete peer-to-peer payments and link their debit cards for instant bank transfers, CEO Linda Yaccarino said on X. The X Money Account service is expected to debut later this year.
"Visa wants to be everywhere money moves," Visa CMO Frank Cooper III wrote online. "By powering X Money through Visa Direct, we're building on our recent move to recognize digital creators as small businesses, because we know they make a big impact on the digital economy."
V stock surged more than 2% in after hours trade on Thursday. Shares swung 2.1% higher during Thursday trade to mark a record high.
Visa is up almost 9% in January, and has advanced in five of the past six months.
Mastercard Earnings
Mastercard reported a 20% increase in earnings to $3.82 per share adjusted on 14% revenue growth to $7.49 billion.
FactSet expected earnings of $3.69 per share on $7.39 billion in revenue.
Gross dollar volume rose 12% for the quarter, while purchase volume increased 13%. Cross-border volume jumped 20%.
Mastercard's switched transactions, which include authorization, clearing and settlement transactions, increased 11% from last year.
For 2025, the company expects to generate low double-digit revenue growth for both Q1 and the full year.
MA stock surged 3.1% Thursday to notch a new all-time high.
Mastercard on Wednesday hit a record 550.61. Shares are up 15% from a cup breakout in mid-September.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
