This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Visa, MasterCard and the Power of Plastic

Finally, with 48% market share of total payment volume in the U.S., Visa dominates the credit card landscape. Visa reported earnings of $1.85 per share, or $1.2 billion, an increase of 20% and 15% over the same period's adjusted results in 2012. Total operating revenue rose by 13%, driven by strong gains in its service. Data processing rose by 17% while international transactions revenue rose by 12%.

On the top line the company reported revenue at $2.9 billion, up 8% over the fourth quarter of last year. While its key business segments saw revenue improvements greater than 10%, revenue was only up 8% due to an increase in client incentives. This line item acts as a contra-revenue item and grew from $563 million to $680 million, a gain of more than 20%. Shares of the company tumbled following the quarter but have since recouped the majority of these losses.

Wrap Up: While most of the financial sector has run substantially to the upside over the last year, credit cards seem to be performing well. Over the long term I believe each of these companies can perform well within their respective spaces. American Express stands to benefits from a renewal in corporate spending. Discover will carry its customers into its full line of offerings. MasterCard is doing damage in the international market while Visa continues in its powerful position here at home.

At the time of publication the author was long AXP and DFS.

Must Read: Cracker Barrel Fight: Biglari Holdings Ups the Ante

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Nate Matherson is currently a student at the University of Delaware, where he is pursing degrees in Finance and Economics. Nate manages his own investment portfolios in addition to writing investment analysis articles for a variety of news outlets. In the future, Nate would love to work in either the portfolio management or investment banking industry.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AXP $64.26 -0.91%
DFS $55.15 -0.72%
MA $96.25 -0.21%
V $77.07 -0.16%
AAPL $94.19 -1.04%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs