Visa Inc's (NYSE:V, ETR:3V64) share price was tipped to fall again when US markets begin trading after third-quarter revenues just missed market forecasts.
High interest rates are affecting spending in the lower-income segment, said the credit card company, while Asia-Pacific activity is being affected by China’s problems.
Revenue was $8.90 billion, compared to forecasts for $8.92 billion, even though payments volume rose by 7% and excluding Europe by 14%.
Earnings per share for the third quarter were $2.42, meeting expectations, while Visa forecast low double-digit percentage revenue growth in quarter four.
Both revenues and earnings were well up on the same period a year ago, revenue by 10% and earnings by 12%, but analysts said the current valuation leaves little room for error.
"Visa was priced for perfection back in March but has eased since then as unemployment, payment and loan delinquencies, and continued consumer disposable income concerns tick higher," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
Shares fell yesterday and are expected to open 3.3% lower today.