Visa Stock Drops After Massive Earnings News

The stock market had a rough day on Wednesday and Visa (NYSE: V) didn't help the cause. It reported fiscal third-quarter earnings results after the bell on Tuesday. Shares fell as much as 4.4% early in trading Wednesday and were down 4.1% as of 1 p.m. ET. Net revenue was up 10% to $8.9 billion and net income jumped 17% to $4.9 billion, or $2.42 per share. Earnings were in line with expectations but revenue missed estimates of $8.92 billion. The revenue miss was small, but the details behind the miss were important. Management said high earners were still spending but lower earners had started to cut back on spending. As a company that's part of the payment fabric for all economic activity, a slowdown in consumer spending will hit Visa's growth more than most companies.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool