Visa is the latest to reduce guidance on Coronavirus impact…
(Bloomberg) — Visa sees 2Q net revenue growth to be about 2.5% to 3.5% percentage points lower than the outlook shared on Jan. 30.
· “Cross-border growth rates have deteriorated week by week since the coronavirus outbreak in China, and trends through February 28, 2020 do not yet fully reflect the impact of the coronavirus spreading outside of Asia. As such, we anticipate that this deteriorating trend has not bottomed out yet”
· The most significant impact has been on travel to and from Asia
· Cross-border eCommerce unrelated to travel has thus far not been significantly impacted, except in some Asian markets
· In markets where Visa processes the majority of its transactions, domestic spending growth, both credit and debit, remains largely stable, with the exception of some impact in Hong Kong and Singapore
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109
$V.US
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