Stocks

Visa reported better-than-expected revenue and better-than-expected EPS. Revs were ~3% better than the street’s estimates, coming in at $7.79B, while EPS were ~3.5% better that what the street projected, coming in at $1.93 (non-gaap).

Mastercard Inc (MA) reported Q3 earnings in the same cadence as Visa’s earnings this quarter – increased revenues overall largely from an increase in cross-border (travel) transactions. Revenue beat analyst expectations by 1.68% ($5.76B) and EPS (adj. diluted) of $2.68 vs expectations of $2.57.

We continue to rate Meta SELL in light of the company’s Q3 earnings. Headline concerns are declining revenue – 4% less YoY, increased costs of +19% and a significantly depleted operating income margin – 20% vs. 36% YoY. Management guided down for Q4, expecting a ~7% currency headwind. EPS declined 49% YoY to $1.64 and net income declined 52% YoY on the back of rising operating costs.

Pool Corp (NYSE: POOL) continues to report strong results, beating the street’s EPS estimates by 2.6% ($4.76 vs $4.64) and revenue estimates by 1.1% – $1.62B of revs vs. an expected $1.60B. Mgmt guided for FY EPS of $18.50-19.05. The earnings beat comes from a combination of higher prices (driven by inflation) and increased demand (+10%) largely from the “sun belt” (the lower southeast to southwest region of the US). Taking a macro outlook we’ve typically seen sales driven by higher prices (Dominos, Nike) so to see a product where the underlying demand is growing buoys our confidence, especially given the global macro environment. We reiterate our BUY rating.

LVMH reported strong Q3 results, tallying up revenues of 19.76B euros vs. analyst estimates of 18.83B euros. Its nine-month results grew 28% YoY (20% organic growth, +8% currency-related). All its segments reported double digit growth; in particular fashion & leather goods continues to grow well (though decelerated +10% from Q1) and demand for watches and jewelry continues apace, suggesting the company’s recent acquisition of Tiffany is working well.