Will The Other Credit Card Stocks Mirror The Q3 Success Of American Express?

After the market closed on Wednesday, American Express Company AXP reported earnings of $1.24 per share and revenue of $7.77 billion, which beat the Street’s consensus by $0.28 and $50 million, respectively.

It should be noted that, while higher than expected, revenue was the lowest reported in more than five years, largely due to a loss of a Costco Wholesale Corporation COST contract, which had accounted for roughly 8 percent of all money spent using AmEx cards in 2015.

Next week, Visa Inc V, Mastercard Inc MA, Capital One Financial Corp. COF and Discover Financial Services DFS will report their quarterly financial results.

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Will they be able to deliver better than expected performance, same as American Express did? Let’s take a look at what the Street has in mind.

Voices From The Street

Visa will report its Q4 results on Monday afternoon, and analysts are modeling EPS of $0.73 on revenue of $4.241 billion, up from $0.62 and $3.571 in the same quarter last year.

The Vetr crowd has a 3.5 Stars (Buy) rating on shares of Visa. Its average price target of $87.75 implies a potential return of 6.8 percent from current valuations.

MasterCard’s report is scheduled for Friday morning, and the Street envisions Q3 EPS of $0.98 on revenue of $2.735, versus $0.91 and $2.53 billion seen a year ago.

The Vetr crowd maintains a 3.5 Stars (Buy) rating on shares of MasterCard. Its average price target of $110.07 implies a potential return of 6.8 percent from current valuations.

Finally, there’s Capital One Financial Corp. and Discover Financial, which will announce their results on Tuesday.

For the former, Wall Street is anticipating EPS of $1.94 on revenue of $6.355 billion, versus EPS of $2.10 on revenue of $5.9 billion registered in the same quarter last year.

Lastly, analysts believe that Discover Financial will post EPS of $1.48 on revenue of $2.28 billion, up from $1.38 and $2.188 billion delivered in the same period a year ago.

Full ratings data available on Benzinga Pro.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.