Discover Financial Services

Latest Discover Financial Services News and Updates

  • uploads///Valuations
    Earnings Report

    AXP’s Valuations Down in 4Q15, Targeted $1 Billion in Savings

    American Express (AXP) expects its full-year 2016 EPS to be between $5.40–$5.70. It looks to return to positive EPS growth in 2016 and is targeting a minimum of $5.60 EPS for 2017.

    By Robert Karr
  • uploads///Histogram
    Macroeconomic Analysis

    What New Developments Can You Expect from the Fed?

    Potential new developments from the Fed include a suggestion by the subcommittee on communications that median values of policymakers’ projections be published.

    By David Ashworth
  • uploads///Operating expenses
    Earnings Report

    Mergers and Marketing Efforts Pressure MasterCard’s Margins

    MasterCard’s rebates and incentives rose by 18% to $1.0 billion in 1Q16—higher than expected, mainly due to the timing of some deals and acquisitions.

    By Robert Karr
  • uploads///rel val
    Financials

    A Look at Capital One’s Valuations

    Capital One Financial Corporation’s (COF) PE (price-to-earnings) ratio is 8.77x on an NTM basis compared to its competitors’ average PE ratio of 20.79x.

    By Raymond Anderson
  • uploads///Operating expenses
    Earnings Report

    Visa Expected to Post Healthy Margins in Fiscal 3Q16

    Visa (V) has maintained its operating margin above 60% over the past few years. The company’s major expenses include personnel, marketing, network and processing, and professional fees.

    By Robert Karr
  • uploads///Processed
    Macroeconomic Analysis

    Increased Spending, Electronic Payments Beneficial for Visa

    Visa’s total transactions grew by 11% on a YoY (year-over-year) basis in fiscal 4Q15. The company reported total transactions of 27.9 billion in fiscal 4Q15, as compared to 25 billion in fiscal 4Q14.

    By Robert Karr
  • uploads///Stock
    Macroeconomic Analysis

    How Payment Processors Are Performing amid Challenges in 2016

    Payment processors are seeing major changes in 2016, including increased competition on pricing and the adoption of new technologies such as wearables.

    By Robert Karr
  • uploads///RoE
    Macroeconomic Analysis

    Which Payment Processor Has the Highest Payouts and Repurchases?

    Payment processors are rewarding their shareholders with 1%–2% dividend yields, largely dependent on operating performance.

    By Robert Karr
  • uploads///Balance sheet
    Company & Industry Overviews

    MasterCard’s Leverage Is Comfortable for Expansion, Acquisitions

    MasterCard (MA) has debt of $3.3 billion with a total balance sheet of $15.9 billion as of March 31, 2016. This compares to $16.2 billion in 4Q15.

    By Robert Karr
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    Company & Industry Overviews

    Can American Express Distributions Continue to Attract Investors?

    American Express (AXP) has been using its strong balance sheet position to consistently declare dividends to its shareholders.

    By Raymond Anderson
  • uploads///american express revenue and income growth
    Company & Industry Overviews

    American Express: Opportunities Abound in a Challenging Market

    Co-branding relationships are an important part of the American Express business model. The costs of renewing and extending these relationships is increasing.

    By Rekha Khandelwal, CFA
  • uploads///analysts
    Company & Industry Overviews

    Discover Financial Services: Assessing Analysts’ Ratings

    Five analysts suggested a “hold,” one recommended a “strong sell,” and nine recommended a “strong buy” on DFS stock.

    By Raymond Anderson
  • uploads///Total shareholder returns
    Earnings Report

    Investors should watch Discover’s stock in the longer term

    Discover Financial’s (DFS) stock price rose from $14.70 at the end of 2009 to $65.50 at the end of 2014. This is an increase of 346%.

    By Rekha Khandelwal, CFA
  • uploads///PayPals Active Customer Accounts
    Earnings Report

    The Future of PayPal: Interpreting 4Q16

    PayPal’s faces competition from almost all angles. But its peer-to-peer payment service, Venmo, has become a source of great hope.

    By Ruchi Gupta
  • uploads///Return on shareholder
    Macroeconomic Analysis

    Payment Processors Dividends Are Now Rising on This

    Payment processors are rewarding their shareholders with dividend yields of 1%–2%, depending largely on operating performance.

    By Robert Karr
  • uploads///Mobile payment transaction value
    Earnings Report

    Best Buy Will Support Apple Pay in 2H15

    Apple is reportedly in talks with major banks in Canada, and it partnered with Union Pay in China last year to broaden the reach of Apple Pay.

    By Puneet Sikka
  • uploads///Balance sheet
    Macroeconomic Analysis

    Visa Establishes Partnerships to Expand in China

    Visa announced partnerships with the China Foundation for Development of Financial Education and the China Foundation for Poverty Alleviation.

    By Robert Karr
  • uploads///visas forward pe
    Earnings Report

    Analyzing Visa’s Valuation after Its Q2 Earnings

    Visa (V) is trading at a forward PE ratio of 27.7x, which is higher than its five-year average PE ratio of 24.5x.

    By Rekha Khandelwal, CFA
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    Company & Industry Overviews

    Why Disney Is Spending $25 Million per Year on Staff Education

    The Walt Disney Company is among those large American companies that have launched back-to-school programs for their employees.

    By Ruchi Gupta
  • uploads///Chart  Retail Sales
    Earnings Report

    Improving Economy and Retail Sales to Boost Mastercard’s Q3 Results

    A healthy job market and a steady hike in wages have increased the spending power of consumers.

    By Anirudha Bhagat
  • uploads///credit card _
    Earnings Report

    What Will Drive Mastercard’s Third-Quarter Earnings?

    Mastercard (MA) is scheduled to report its third-quarter results on October 30.

    By Anirudha Bhagat
  • uploads///Chart  Retail Sales
    Earnings Report

    Visa’s Q4 Results to Gain from Improving Economy and Retail Sales

    The US GDP grew 4.2% in the second quarter, which was almost double the 2.2% increase registered in the first quarter.

    By Anirudha Bhagat
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    Earnings Report

    Higher Payment Volumes to Drive Visa’s Q4 2018 Earnings

    Visa (V) plans to report its Q4 2018 earnings on October 24. Analysts expect Visa to report EPS of $1.20, marking YoY growth of 33.3%.

    By Anirudha Bhagat
  • uploads///Chart  US Retail Sales
    Company & Industry Overviews

    Mastercard to Gain from Improving Economy and Rising Retail Sales

    The Consumer Confidence Index increased to 133.4 in August from 127.9 in July—its highest reading since its October 2000 reading of 135.8.

    By Anirudha Bhagat
  • uploads///Chart  Retail Sales
    Company & Industry Overviews

    Improving GDP and Retail Sales Could Boost Visa’s Platform Usage

    Improving GDP growth, a healthy job market, and steady wage growth have increased the disposable income of consumers, thereby giving them greater spending power.

    By Anirudha Bhagat
  • uploads///Feature Image
    Financials

    Visa Sizzles on Strong Digitization Trends and Improving Economy

    Visa stock (V), which was around $78 at the beginning of 2017, now trades close to $143, a jump of over 83%.

    By Anirudha Bhagat
  • uploads///anaklysts
    Company & Industry Overviews

    How Analysts Rate Mastercard

    Analysts’ rating on Mastercard (MA) improved in July compared to June.

    By Raymond Anderson
  • uploads///V ser rev
    Company & Industry Overviews

    Understanding Visa’s Take on Contactless Payments

    Visa (V) has been making efforts to increase the use of contactless payments in the United States after experiencing a positive response.

    By Raymond Anderson
  • uploads///rel val
    Company & Industry Overviews

    Mastercard Has Premium Valuations after Strong Q2 2018 Results

    Mastercard (MA) has a price-to-earnings ratio of 28.04x on an NTM (next-12-month) basis compared to the peer average of 15.95x.

    By Raymond Anderson
  • uploads///ma post
    Company & Industry Overviews

    How Mastercard’s Gross Dollar Volumes and Net Revenues Trended

    In the second quarter, Mastercard (MA) witnessed total gross dollar volumes (or GDV) of $1.5 trillion.

    By Raymond Anderson
  • uploads///dfs post
    Earnings Report

    Discover Financial’s Q2 2018: Total Loans Grew 9% Year-over-Year

    On July 26, Discover Financial Services (DFS) released its earnings report for the second quarter.

    By Raymond Anderson
  • uploads///V pre
    Earnings Report

    Visa’s Payments Volumes Could Fuel Its Growth

    On July 25, Visa (V) is scheduled to report its results for the third fiscal quarter. Analysts expect Visa to post an EPS of $1.09.

    By Raymond Anderson
  • uploads///Ma pre
    Earnings Report

    Mastercard’s Q2 Preview: Spending, Macro Data Could Be Drivers

    Mastercard (MA) is set to release its second-quarter earnings report on July 26. What can we expect?

    By Raymond Anderson
  • uploads///cof post
    Earnings Report

    Capital One’s Net Interest Margin Fell in the Second Quarter

    Capital One Financial (COF) posted second-quarter results on July 19.

    By Raymond Anderson
  • uploads///AXP pre
    Earnings Report

    American Express in Q2: Drivers Could Be Loan Growth, Spending

    On July 18, American Express (AXP) is expected to report its Q2 2018. Analysts expect EPS to be $1.82 compared to $1.86 in the first quarter.

    By Raymond Anderson
  • uploads///COF pre
    Earnings Report

    Capital One’s Q2: Expectations Amid Trade Wars, Improved Economy

    Capital One (COF) is expected to release its Q2 2018 earnings on July 19. Analysts expect EPS of $2.68, a YoY rise of 38.1%.

    By Raymond Anderson
  • uploads///analysts
    Company & Industry Overviews

    What Factors Could Influence Analysts’ Ratings on Discover?

    Growing trade tensions are a primary concern, as they could impact the performances of Discover Financial Services (DFS) and its peers.

    By Raymond Anderson
  • uploads///TR
    Company & Industry Overviews

    What Discover Financial Has in Mind Moving Forward

    Discover Financial Services (DFS) generated net interest income amounting to $2.1 billion in the first quarter.

    By Raymond Anderson
  • uploads///expected rev
    Company & Industry Overviews

    What’s behind Mastercard’s Co-Brand Wins?

    The economic and business environment prevailing in an economy affects the business fundamentals of payment processing giants like Visa (V) and Mastercard (MA).

    By Raymond Anderson
  • uploads///analysts
    Company & Industry Overviews

    How Analysts View American Express Stock

    In June, eight of the 32 analysts covering the stock have given it a “buy” rating, and two analysts have given it a “strong sell.”

    By Raymond Anderson
  • uploads///cons
    Financials

    What’s Affected Consumer Finance Companies Recently?

    On June 25, the Dow Jones Industrial Average saw strong downward pressure primarily due to escalating US-China trade tensions.

    By Raymond Anderson
  • uploads///axp
    Company & Industry Overviews

    American Express: What the Second Quarter Holds

    The second quarter could be beneficial for American Express (AXP) due to an expected rise in consumer loans and transactions.

    By Raymond Anderson
  • uploads///MA
    Earnings Report

    Mastercard’s Strong Results Beat Earnings and Revenue Estimates

    Mastercard (MA) released its earnings report this morning. The company reported earnings per share or EPS of $1.50 in 1Q18.

    By Raymond Anderson
  • uploads///Rel Val
    Company & Industry Overviews

    Why Visa Has Premium Valuations

    Visa’s (V) price-to-book ratio stands at 6.83x on a next-12-month basis, implying a premium valuation compared to its peer average of 3.09x.

    By Raymond Anderson
  • uploads///NOR
    Company & Industry Overviews

    An Analysis of These Components of Visa’s Net Operating Revenue

    Of its total fiscal 1Q18 net operating revenue of $4.9 billion, Visa’s service revenue made up $2.1 billion, or 44.1%.

    By Raymond Anderson
  • uploads///Consumer Financial image
    Financials

    Visa–Fraedom Acquisition to Benefit Business-to-Business Payments

    Visa (V) announced its acquisition of Fraedom, which provides payment solutions for financial institutions.

    By Raymond Anderson
  • uploads///Rel val
    Earnings Report

    Behind Discover Financial Services’ Discounted Valuations

    Discover Financial Services (DFS) has a PE (price-to-earnings) ratio on an NTM (next 12-month) basis of 10.26x, while the average for its peers is 13.97x.

    By Raymond Anderson
  • uploads///EV to EBITDA ratio
    Company & Industry Overviews

    Analyzing Visa’s Assets and Liabilities

    As of September 30, 2016, Visa (V) has reported a total asset balance of $64.03 billion. As of June 30, 2017, the company managed to report a total asset balance of $64.00 billion.

    By Raymond Anderson
  • uploads///MAs GDV excl US
    Financials

    International Business for American Express and Mastercard

    American Express (AXP) witnessed a rise of 12.0% in its proprietary cards volume in 2Q17, which reflects a marginal increase of 1.0% from 1Q17.

    By Raymond Anderson
  • uploads///actual eps posted by DFS
    Consumer

    Visa, American Express, MasterCard Beat Analyst Estimates

    Consumer financial companies such as American Express (AXP), Mastercard (MA), and Visa (V) beat analysts’ estimates for EPS (earnings per share) in 2Q17.

    By Raymond Anderson
  • uploads///Visa and comp
    Earnings Report

    Visa Expands Its Footprint in Europe

    Visa (V) will report its fiscal 3Q17 earnings on July 20, 2017. Wall Street analysts expect Visa to report EPS of $0.81 per share—a decline of 5.8%.

    By Raymond Anderson
  • uploads///AXP International Card Services
    Company & Industry Overviews

    American Express’s International Business Revenues Improve

    American Express’s (AXP) International Consumer and Network Services segment reported a 16.0% rise YoY (year-over-year) in net income for 1Q17.

    By Raymond Anderson
  • uploads///AXP and competitors Revenues
    Company & Industry Overviews

    American Express to Ride on Partnerships, Digitization

    American Express (or Amex) (AXP) has entered into digital partnerships with Airbnb, Facebook (FB), and Uber in order to offset the revenue loss from Costco (COST).

    By Raymond Anderson
  • uploads///MA purchase volume local growth APMEA
    Company & Industry Overviews

    How MasterCard Plans to Expand Presence in Middle East

    MasterCard’s (MA) growth trajectory in the Middle East is expected to continue in the upcoming quarters.

    By Raymond Anderson
  • uploads///Visa Relative Valuation
    Company & Industry Overviews

    Can Visa Sustain Its Premium Valuations?

    Analysts have a positive outlook on Visa (V) for the rest of fiscal 2017 mainly due to the company’s expansion plans in the Asia-Pacific region and its strong payment volume projections.

    By Raymond Anderson
  • uploads///Visa dividend yield
    Company & Industry Overviews

    Why Visa’s Repurchase Program Is Getting Investor Attention

    Over the past five years, Visa (V) has spent $20 billion in various buyback programs.

    By Raymond Anderson
  • uploads///Visa Payment Volumes
    Company & Industry Overviews

    Growth Trajectory in Visa’s Payments Volume to Continue

    Visa (V) management expects its payments volume to continue in 2H17.

    By Raymond Anderson
  • uploads///Balance Sheet
    Company & Industry Overviews

    MasterCard Enhances Repurchases, Operating Flows Grow

    MasterCard (MA) generated $4.5 billion in operating cash flows for 2016. That’s a rise of 10.9% on a year-over-year basis.

    By Robert Karr
  • uploads///Analyst ratings
    Miscellaneous

    What Do Analyst Ratings Suggest for Visa’s Performance in 2017?

    32 of the 36 analysts covering Visa (V) rated it a “buy” or “strong buy” in March 2017.

    By Robert Karr
  • uploads///International revenues
    Company & Industry Overviews

    Visa Is Investing in Innovative Solutions and Emerging Markets

    The payment processing industry is witnessing major changes globally due to regulatory changes, increased competition, and a demand for continual innovation.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Visa Commanding Premium Valuations on Expected Growth in 2017

    Visa is trading at ~21.3x on a one-year forward earnings basis. Its peers are trading at an average of 16.4x.

    By Robert Karr
  • uploads///Balance sheet
    Earnings Report

    Visa’s Leverage Is Stable after Europe Acquisition and Repurchases

    Visa (V) increased its leverage, including current maturities and long-term debt, to $16.4 billion in fiscal 1Q17 against total equity of $31.7 billion in 1Q16.

    By Robert Karr
  • uploads///Processed transactions
    Earnings Report

    Visa’s Transactions Helped by Cross Border, Europe, and Asia

    Visa (V) reported a total of 40.8 billion transactions in fiscal 1Q17, compared to 29.0 billion in fiscal 1Q16. That’s a rise of 41.0% year-over-year.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Amex’s Valuation Is Fair amid a Volatile Operating Performance

    American Express expects its earnings per share to be between $5.60 and $5.80 in 2017 on the back of revenue growth, marketing spending, and operating expenses.

    By Robert Karr
  • uploads///Processed transactions
    Earnings Report

    Will MasterCard’s Processed Transactions Rise in Q4?

    MasterCard (MA) has seen a steady rise in processed transactions on the back of rising transactions in international markets.

    By Robert Karr
  • uploads///GCS
    Earnings Report

    AXP’s Global Commercial Services Segment Sees a Steady Top Line

    American Express’s (AXP) Global Commercial Services (or GCS) segment formed 31% of the company’s total revenue in 4Q16, in line with the previous quarter.

    By Robert Karr
  • uploads///International
    Earnings Report

    AXP’s International Business Impacted by Spending, Dollar

    American Express’s (AXP) International Card Services segment’s revenue rose 2% to $1.4 billion in 4Q16, compared to $1.3 billion in 4Q15.

    By Robert Karr
  • uploads///Valuations
    Macroeconomic Analysis

    Understanding Visa’s and MasterCard’s Higher Valuations

    Visa (V) has been commanding premium valuations over the past few years on a strong brand, high growth, diversified portfolio, and improved technology.

    By Robert Karr
  • uploads///Dollar volumes
    Macroeconomic Analysis

    Will Payment Processors Keep Seeing the US Dollar Impact in 2017?

    Payment processors are now seeing improved performances on increased spending, new technologies, expansion into global markets, and the stable US dollar.

    By Robert Karr
  • uploads///Processed
    Macroeconomic Analysis

    Visa and MasterCard See a Strong Rise in Transactions, Volumes

    Consumers are making more payments through mobile platforms and internet-based purchases, which has been beneficial for the payment processing industry.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Is Buffett’s Bet Boosting Amex’s Valuations?

    Amex expects its EPS to be between $5.65 and $5.75 in fiscal 2016, including the restructuring charges of first three fiscal quarters of the year.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Visa’s Valuation Premium Is Intact on Its Relative Outperformance

    Visa’s (V) stock has risen 15% over the past six months, mainly due to consumer spending, new partnerships, and geographic expansion.

    By Robert Karr
  • uploads///Expenses
    Earnings Report

    Visa Maintains Its Margins following the Visa Europe Merger

    Visa (V) posted an operating profit margin of 64% in fiscal 4Q16, in line with the prior year’s quarter and lower than the previous quarter’s 68%.

    By Robert Karr
  • uploads///Balsheet
    Earnings Report

    Pay Attention to Visa’s Efforts to Fund Growth with Debt

    In the June 2016 quarter, Visa (V) added another $5 billion to its share repurchase program, bringing the total to $7.3 billion.

    By Robert Karr
  • uploads///GNM
    Earnings Report

    Low 3Q Growth Expectations for Amex’s Global Network Services

    American Express’s (AXP) Global Network and Merchant Services segment contributes 14% of the company’s total revenues.

    By Robert Karr
  • uploads///International
    Earnings Report

    Amex Targets Higher Growth in International Business in 3Q

    American Express (AXP) has been looking to expand its business internationally amid high competition in the domestic markets.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    MasterCard Commands Premium Valuations on Core Growth

    Currently, MasterCard (MA) is trading at 24.7x on a one-year forward earnings basis. Its peers are trading at an average of 18.1x.

    By Robert Karr
  • uploads///Expenses
    Company & Industry Overviews

    MasterCard Deploys Higher Rebates for Market Share

    MasterCard’s 2Q16 operating expenses, after excluding non-operating items, rose 12%–13% on similar currencies.

    By Robert Karr
  • uploads///Processed transactions
    Company & Industry Overviews

    MasterCard Processed Transactions Rise at a Record Pace

    More than 60% of MasterCard’s (MA) business comes from its International segment. The company benefits from partnerships, corporate programs, and rebates in Europe and Asia.

    By Robert Karr
  • uploads///Balance sheet
    Company & Industry Overviews

    MasterCard Generates Strong Cash Flows, Less Leverage

    MasterCard saw its EPS rise 10% in 2Q16. The company expects to generate higher net EPS on stable currency in 2016.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Amex’s Valuations Imply Slower Growth and Uncertainty

    American Express (AXP) expects its EPS to be adversely affected year-over-year. It expects its 2016 EPS to be $5.40–$5.70.

    By Robert Karr
  • uploads///RoS
    Company & Industry Overviews

    Expectations Call for Amex’s Yields, Repurchases to Rise in 2017

    American Express’s (AXP) adjusted net profits rose 7% in the June quarter on increased spending, especially in international markets.

    By Robert Karr
  • uploads///GNM
    Company & Industry Overviews

    Global Network and Merchant Services Expected to Be Low in 3Q

    American Express’s (AXP) Global Network and Merchant Services segment’s revenues are expected to be low in the September quarter. The division operates a global payments network.

    By Robert Karr
  • uploads///GCS
    Company & Industry Overviews

    Amex’s Global Commercial Services Rising on Initiatives

    American Express’s (AXP) Global Commercial Services segment’s total revenues, net of interest expenses, remained flat at $2.5 billion in 2Q16.

    By Robert Karr
  • uploads///International
    Company & Industry Overviews

    International Growth Continues to Offset Amex’s Domestic Slide

    American Express’s (AXP) revenue decline in the domestic market has been partially offset by growth in international markets.

    By Robert Karr
  • uploads///Us consumer
    Company & Industry Overviews

    American Express Faces Stiff Competition in the United States

    American Express’s (or Amex) (AXP) US Card Services segment has had strong competition from local players on the incentives front as well as in striking new partnerships.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Visa Commands Premium Valuations on Strong Performance

    Visa (V) stock has risen by 12% over the past six months as a result of strong consumer spending, the addition of new clients, and volume growth from existing clients.

    By Robert Karr
  • uploads///Balsheet
    Company & Industry Overviews

    Visa Europe Buy, Buyback Program Are Feathers in Visa’s Cap

    Visa (V) announced a new $5 billion share repurchase program, which increases the total available for share repurchases to $7.3 billion.

    By Robert Karr
  • uploads///transactions processed
    Company & Industry Overviews

    International Use to Boost Visa’s Fiscal 4Q16 Processed Transactions

    Visa (V) reported total transactions of $30.2 billion in fiscal 3Q16, compared to $27 billion in fiscal 3Q15—a growth of 11.8% year-over-year.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    How Visa’s Valuation Was Impacted by Visa Europe Buy

    Visa’s full-year operating cash flows in fiscal 2016 are expected to be $7 billion.

    By Robert Karr
  • uploads///transactions processed
    Earnings Report

    How Visa’s Operating Profit Margins Beat Its Competitors

    Visa (V) reported total transactions of $30.2 billion in 3Q16 compared to $27 billion in 3Q15, a growth of 11.8% year-over-year.

    By Robert Karr
  • uploads///expenses
    Earnings Report

    Visa Manages to Lower Expenses in Fiscal 3Q16

    Visa expects 2% to 3% expense growth for legacy Visa in 4Q16 from marketing and higher technology project spending related to the Rio Olympics.

    By Robert Karr
  • uploads///Us consumer
    Earnings Report

    Why Amex’s US Consumer Service Revenues Fell in Q2

    American Express’s (AXP) US Card Services segment’s total revenues, net of interest expenses, fell 3% to $3.2 billion in 2Q16.

    By Robert Karr
  • uploads///RoE
    Earnings Report

    American Express’s Shareholders Payouts Continue in 2Q16

    American Express’s (AXP) adjusted net profits fell by 6% in 1Q16 on a strong dollar, increased competition, and higher spending.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    American Express’s Valuations after Brexit Vote, 2Q16 Expectations

    American Express expects its 2016 EPS to be $5.40–$5.70. It expects to return to positive EPS growth in 2016 and is targeting a minimum of $5.60 for 2017.

    By Robert Karr
  • uploads///GNM
    Company & Industry Overviews

    Amex’s Global Network and Merchant Services Segment in 2Q16

    Amex’s (AXP) Global Network and Merchant Services segment formed 14% of the company’s total revenues. The segment’s total revenues, net of interest expense, fell by 3% to $1.1 billion in 1Q16.

    By Robert Karr
  • uploads///Balance sheet
    Macroeconomic Analysis

    Payment Processors Add Leverage for Organic, Inorganic Expansions

    Payment processors have increased their leverages for the purpose of organic and inorganic expansions.

    By Robert Karr
  • uploads///Operating expenses
    Macroeconomic Analysis

    How Visa Manages High Operating Margins in a Competitive Business

    Visa (V) has maintained its operating margin above 60% over the past few years.

    By Robert Karr
  • uploads///Operating expenses
    Macroeconomic Analysis

    How Is MasterCard Posting Operating Margin in Mid-50%?

    MasterCard posted an operating margin of 55% in 1Q16, which was in line with the prior year’s quarter. Operating income remained flat.

    By Robert Karr
  • uploads///Transactions
    Macroeconomic Analysis

    MasterCard Transactions Benefit from International Growth

    In 1Q16, MasterCard (MA) reported total processed transactions of 12.6 billion compared to 11.0 billion in the prior year’s quarter.

    By Robert Karr
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