Reason and Political Risk in Markets
Whether making buy and sell decisions on individual securities or allocating to asset classes, we must tune out the noise and use reason to determine the right course to set.
Mastercard (MA) posted operating income of $1.7 billion in 2Q17, which reflects a substantial rise of 20% from its 2Q16 operating income.
Mastercard (MA) is expected to declare dividends of $0.89 per share in 2017, reflecting a rise of ~17.1% from its total dividends declared in 2016.
On a local currency basis, in 2Q17, Mastercard (MA) witnessed a 14% rise on a YoY (year-over-year) basis in its cross-border volumes.
On July 17, 2017, Mastercard (MA) announced the acquisition of Brighterion, a company whose main area of operation focuses on fraud prevention and risk mitigation.
Mastercard’s gross dollar volumes in 2Q17 stood at ~$1.3 trillion compared to ~$1.2 trillion in 2Q16.
Mastercard (MA) posted net income of $1.2 billion in 2Q17, reflecting a substantial increase of 20% from its 2Q16 net income.
Visa (V) reported strong net revenues in fiscal 3Q17 on the back of processed transactions, cross-border volumes, and payments volumes.
Visa (V) has been pursuing the Chinese market as a long-term opportunity, which could lead to an increase in its payments volume.
Visa (V) reported strong numbers on processed transactions in fiscal 3Q17.
In fiscal 3Q17, growth in cross-border volumes has been the major contributor to international transaction revenue growth.
Visa’s five-year average dividend yield (V) stood at 0.68%.
American Express’s (AXP) Global Merchant Services division witnessed an increase in its 2Q17 net income to $430 million, reflecting a rise of 15% from its 2Q16 net income.
American Express (AXP) has operating cash flow of ~$6.9 billion on a trailing-12-month basis.
In 2Q17, American Express’s (AXP) International Consumer and Network Services division posted net income of $209 million, reflecting an 8% fall on a year-over-year basis.
American Express (AXP) delivered a return on assets of ~3.3% on a trailing-12-month basis.
In 2Q17, American Express (AXP) posted earnings per share of $1.47, beating the analysts’ estimate of $1.44. AXP’s EPS resulted from increased YoY revenues and the credit quality of its existing customers.
Visa’s current price-to-book ratio is 8.74x, which is higher compared to its competitors Discover Financial Services (DFS) and American Express (AXP).
In fiscal 2016, Visa (V) declared dividends of $0.56 per share. Wall Street analysts expect Visa to declare dividends of $0.66 per share for fiscal 2017.
Visa’s (V) acquisition of Visa Europe enabled the company to enhance its global reach. The main agenda was to bring innovation to the European market.