NEW YORK (TheStreet) -- Shares of Visa (V) rose 4.7% to $232.18 on Friday, following American Express' (AXP) quarterly earnings report.
American Express' fourth-quarter revenue increased by 5% from a year earlier. Net income for the credit card company rose to $1.3 billion, or $1.21 a share, from last year's $637 million, or 56 cents a share. The company also reported an 8% year-over-year increase of worldwide card spending to $254 billion.
Shares of American Express gained 3.6% on Friday to close at $90.97.
While the two companies have differing business models, American Express, like Visa, is a payment processor, and the solid increase in card spending it reported could bode well for Visa.
Visa is scheduled to announce its quarterly earnings on Jan. 30, with analysts polled by Thomson Reuters estimating earnings of $2.16 a share, increasing from EPS of $1.93 a year earlier.
TheStreet Ratings team rates Visa as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."