Visa Inc. said late Monday that it expects the coronavirus outbreak to result in fiscal second-quarter revenue that is about 2.5 to 3.5 percentage points lower than the previously issued range of "low double-digit net revenue growth in constant dollars" that Visa gave with its latest earnings report in January. The company disclosed in a Monday filing that the coronavirus was having a "significant impact" on Asia-related travel that has caused a "sharp slowdown of our cross-border business" for both card-present and card-not-present travel spending. Visa said that cross-border e-commerce spending unrelated to travel hasn't seen a significant negative impact, expect in certain Asia markets. "In markets where Visa processes the majority of our transactions, domestic spending growth, both credit and debit, remains largely stable with the exception of some impact in Hong Kong and Singapore," the company said in its filing. Visa joins Mastercard Inc. and PayPal Holdings Inc. , both of which warned in recent weeks of negative coronavirus impacts. Visa shares are down 0.2% in premarket trading Tuesday, and they're off 4.2% over the past month as the Dow Jones Industrial Average has slipped 6%. Read More...
Visa Inc. said late Monday that it expects the coronavirus outbreak to result in fiscal second-quarter revenue that is about 2.5 to 3.5 percentage points lower than the previously issued range of “low double-digit net revenue growth in constant dollars” that Visa gave with its latest earnings report in January. The company disclosed in a Monday filing that the coronavirus was having a “significant impact” on Asia-related travel that has caused a “sharp slowdown of our cross-border business” for both card-present and card-not-present travel spending. Visa said that cross-border e-commerce spending unrelated to travel hasn’t seen a significant negative impact, expect in certain Asia markets. “In markets where Visa processes the majority of our transactions, domestic spending growth, both credit and debit, remains largely stable with the exception of some impact in Hong Kong and Singapore,” the company said in its filing. Visa joins Mastercard Inc. and PayPal Holdings Inc. , both of which warned in recent weeks of negative coronavirus impacts. Visa shares are down 0.2% in premarket trading Tuesday, and they’re off 4.2% over the past month as the Dow Jones Industrial Average has slipped 6%.
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