Credit card giants Visa Inc (NYSE:V) and Mastercard (NYSE:MA) are set to offer insights into consumer spending and financial health when both companies report earnings Thursday.
Earnings Estimates: Mastercard is up first for earnings, with its fourth-quarter financial results coming before Thursday’s market opens. Analysts expect the company to report revenue of $7.39 billion, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in more than 10 straight quarters.
Analysts expect Mastercard to report fourth-quarter earnings per share of $3.69, up from $3.18 in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
Visa will report first-quarter financial results after market close Thursday.
Analysts expect the company to report quarterly revenue of $9.34 billion, up from $8.63 billion in last year’s first quarter. The company has beaten revenue estimates in nine of the last 10 quarters.
Analysts expect Visa to report first-quarter earnings per share of $2.66, up from $2.41 in last year’s first quarter. The company has beaten analyst estimates for earnings per share in nine of the last 10 quarters, with the other quarter having earnings in line with estimates.
Read Also: American Express Analysts Expect Gains From Strong Card Spending
What Analysts Are Saying: Analysts are mostly bullish on both Visa and Mastercard, with some analysts liking both.
Seaport analyst Jeff Cantwell could be the exception with recent rating changes. Cantwell upgraded Visa from Neutral to Buy with a price target of $359. The analyst also downgraded Mastercard from Buy to Neutral with no price target.
Cantwell liked Visa’s greater exposure to the United States market while raising forecasts for the company. The analyst said service and data processing revenue should be higher in 2025 and 2026 with a strengthening U.S. economy in the second half of 2025.
The analyst predicts Visa will see 13% earnings per share growth in 2025 and 2026 alongside double-digit revenue growth in both years.
Cantwell said Visa’s Investor Day in February is a positive catalyst to watch.
Here are other analyst ratings for Visa and their price targets:
- Bank of America: Maintained Neutral rating, raised price target from $314 to $331
- Piper Sandler: Maintained Overweight rating, raised price target from $322 to $368
- Citigroup: Maintained Buy rating, raised price target from $326 to $354
On the other side of the credit card picks is Mastercard, which Cantwell downgraded.
The analyst said Mastercard has a good story, but the stock may be fairly valued at current prices. Cantwell said Mastercard’s revenue upside in 2025 is more limited with higher international exposure compared to Visa.
While Visa has an upcoming Investor Day, Cantwell highlighted in the note the fact that Mastercard’s Investor Day has already passed, leaving fewer catalysts for investors.
Here are recent analyst ratings for Mastercard and their price targets:
- Piper Sandler: Maintained Overweight rating, raised price target from $575 to $591
- Citigroup: Maintained Buy rating, raised price target from $572 to $584
Key Items to Watch: The earnings reports from Visa and Mastercard come after peer American Express Co (NYSE:AXP) recently reported quarterly results.
Freedom Capital Markets Chief Global Strategist Jay Woods shared thoughts on those earnings in his weekly newsletter and how it could predict what will happen to Visa and Mastercard.
“Both stocks are trading right or near all-time highs. How are higher rates and a resilient consumer affecting their bottom line? Are those trends continuing? American Express reported good numbers last week, but dropped -1.4% after a run up into their numbers. Will Visa and Mastercard do the same?” Woods said.
American Express reported record levels of card member spending in the quarter and strong member acquisitions. Investors will be watching these metrics for Visa and Mastercard to see if they are the same or if American Express gained market share at their expense.
Visa stole the spotlight away on Tuesday being named the first partner for X Money, the financial arm of social media platform X, which is owned by Elon Musk.
X CEO Linda Yaccarino said X money will use Visa Direct to help X users have secure and instant funding of their X wallets, which could be connected to debit cards and allow instant transfer of funds from bank accounts.
The comparison of domestic and international revenue and customer trends will likely be a key focus for both companies and analysts under the new White House administration. Investors will closely monitor the results and guidance and like Cantwell end up with a favorite out of the two after Thursday.
V, MA Price Action: Visa stock trades at $336.64 Wednesday versus a 52-week trading range of $252.70 to $337.83. The stock is up 7.0% year-to-date and up 23.0% over the last year.
Mastercard stock trades at $548.91 versus a 52-week trading range of $428.66 to $551.55. The stock is up 5.1% year-to-date and up 24.6% over the last year.
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