So why hasn't Visa warned? Because, they are taking market share, world population growing, less acceptance of cash/check, international opportunities, share buy backs. If Visa sees 60's, all stocks are going to get crushed.
HOW is this a good thing for WMT and their customers? This will HURT sales. Amex charges a higher interchange rate than Visa - why pick on Visa? Maybe WMT can just ask all their customers to pay with cash...
une 13, 2016, 9:59 A.M. ET
Wal-Mart to Visa: Don’t Let the Door Hit You on the Way Out
By Ben Levisohn
Wal-Mart Stores (WMT) announced last Friday that it would stop accepting Visa (V) at its Canadian stores. KBW’s Sanjay Sakhrani and team consider the implications:
Late Friday, a Dow Jones article cited that Wal-Mart was planning to stop accepting Visa cards in its 405 stores in Canada…While it is specifically difficult to tell what level of volumes will be at risk over time, according to an article on theglobeandmail.com, Wal-Mart Canada generates about $23 billion in sales. While the source of this is not disclosed, if we were to simply take Wal-Mart international revenue proportionate to square footage of stores in Canada to the total available internationally, it would be roughly in the same ballpark as this. Considering debit card usage is most prevalent at Wal-Mart and the fact that this market is entirely controlled by Interac in Canada with close to 100% market share, what is at risk is likely e-commerce and credit card volume in Canada. If we were to assume 20% credit card share of Wal-Mart sales in Canada, this equates to about $5 billion in volume. Using Visa share of credit in Canada of about 60% (per the Nilson report) as a proxy for Visa sales volume in Canada at Wal-Mart, this equates to $3 billion in volume (or just under 1.5% of Visa payments volume in Canada and less than 0.1% of Visa’s total global payments volume), though we acknowledge this was derived through a series of assumptions based on limited available data.
Check it out, little cash (less than $1 billion), all assets comprise mostly of Goodwill, and $31 billion in debt.
Could someone show me a worse balance sheet?
Guide lower and then will beat estimates again next quarter, in the meantime lets beat the stock down.
Attn Kmart shoppers - enjoy CTL on sale