Visa stock gains after earnings beat as volume rises 9%

Visa Inc. shares gained about 1% in after-hours trading Thursday after the payments giant topped profit expectations for its fiscal fourth quarter and delivered in-line revenue.

The company recorded net income of $3.0 billion, or $1.34 a share, down from $3.3 billion, or $1.47 a share, in the year-earlier quarter. Adjusted earnings per share rose to $1.47 from $1.21 and came in above the FactSet consensus, which called for $1.43.

Visa’s V, +2.83% revenue climbed to $6.1 billion from $5.4 billion in the year-prior period, matching the FactSet consensus of $6.1 billion.

Visa saw payments volume grow 9% on a year-over-year basis in constant currency. Cross-border volume rose 7% on a constant-dollar basis. The company said that excluding European cross-border transactions, which the company said have revenue yields similar to domestic transactions there, cross-border volume was up 9%.

For fiscal 2020, the current fiscal year, Visa expects low double-digit revenue growth and a negative 1% to 1.5% impact from foreign currency. It also projects a roughly 0.5% positive impact from acquisitions. On earnings, the company is calling for mid-teens growth, a 1% to 1.5% negative foreign-currency impact, and a negative acquisition impact of about 1%.

Shares have gained 34% so far this year, as the Dow Jones Industrial Average DJIA, -0.11% has risen 15%.

Japan’s Inflation Lowest In More Than 2 Years

Japan’s inflation eased to the lowest level in more than two years in September, raising pressure on the central bank to ease policy further, data showed Friday.

Excluding fresh food, inflation eased to 0.3 percent in September from 0.5 percent a month ago, the statistics bureau reported. This was the lowest since April 2017 and in line with expectations.

Likewise, excluding fresh food and energy, consumer prices gained 0.5 percent, slower than the 0.6 percent increase logged in August and matched economists’ expectations.

Headline inflation slowed marginally to 0.2 percent from 0.3 percent in August. On a monthly basis, consumer prices remained flat in September.

Marcel Thieliant, an economist at Capital Economics, said underlying inflation is set to fall towards zero next year, which will increase the pressure on the Bank of Japan to provide additional stimulus, though concerns about financial stability will probably prevent a cut in policy rates.

The economist said the consumption tax hike on October 1 will muddy the waters. Headline inflation is forecast to rise to 0.6 percent in October.
In July, the central bank had forecast 1 percent inflation for fiscal 2019 and 1.3 percent for the fiscal 2020.

BoJ Governor Haruhiko Kuroda last month repeated that the bank will not hesitate to take additional easing measures if needed to maintain the momentum towards achieving the 2 percent price stability target.

Subaru is recalling Imprezas and Crosstreks over engine issues. Is your vehicle included?

Subaru is recalling over 400,000 vehicles in the U.S. to fix problems with engine computers and debris that can fall into motors. The first recall covers 466,000 Imprezas from 2017 through 2019, and 2018 and 2019 Crosstreks. (AP Photo/Gene J. Puskar, File) (Photo: Gene J. Puskar, AP)

DETROIT – Subaru is recalling over 400,000 vehicles in the U.S. to fix problems with engine computers and debris that can fall into motors.

The first recall covers 466,000 Imprezas from 2017 through 2019, and 2018 and 2019 Crosstreks. Subaru says the engine computer can keep powering the ignition coil after motors are shut off. That could cause a short circuit and blown fuse.

Dealers will update software and replace coils and front exhaust pipes if needed.

The second covers 205,000 Imprezas from 2017 through 2019 and 2018 Crosstreks. The aluminum positive crankcase ventilation valves can fall apart. Debris can enter the engine and cause power loss.

Dealers will replace valves if needed. If a valve has separated and parts can’t be found, engines will be replaced.

Both recalls start Dec. 13.

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Capital One earnings slip as net revenue flat

Capital One Financial Corp.’s COF, -0.87% profit slumped as net revenue stayed about flat and its provision and noninterest expenses increased.

Capital One’s earnings were $1.33 billion, down 11% from the comparable quarter a year earlier. Earnings were $2.69 a share, down from $2.99 a share.

Adjusted earnings were $3.32 a share, up from $3.12 a share. Analysts polled by FactSet were expecting $2.93 a share.

Net revenue mostly was unchanged from a year earlier at $6.96 billion. Analysts were expecting $7.21 billion.

Capital One’s noninterest expenses and provision for credit losses both increased from a year prior.

Write to Allison Prang at [email protected]

President Carter released from Atlanta hospital after treatment for fall

ATLANTA (AP) — Former President Jimmy Carter is out of the hospital where he was treated after fracturing his pelvis in a recent fall at his home, a spokeswoman said Thursday.

Carter Center spokeswoman Deanna Congileo said in a statement that the former president had been released from Phoebe Sumter Medical Center, was “looking forward to continuing to recuperate at his home in Plains, Ga., and thanks everyone for their kind well wishes.”

Carter, 95, fell Monday evening at his home. Congileo had said in a statement earlier that his fracture was minor, and he was in good spirits at the hospital and looking forward to recovering at home.

It was the third time Carter has fallen in recent months. He first fell in the spring and required hip replacement surgery. Carter fell again Oct. 6 and, despite receiving 14 stitches, traveled the same day to Nashville, Tenn., to rally volunteers and, later, to help build a Habitat for Humanity home.

Carter is the oldest living former president in U.S. history. He and 92-year-old wife Rosalynn recently became the longest married first couple, surpassing George and Barbara Bush, with more than 73 years of marriage.

The 39th president survived a dire cancer diagnosis in 2015.

Read on: Jimmy Carter says he could not have managed the presidency at 80