After-hours buzz: V, MAT, OCN & more Insight
BUZ INVESTORS After-hours buzz companies are making headlines after the bell on Thursday:
Visa higher after earnings, $5B buyback plan
Visa (NYSE:V) reports payments volume growth of 37% to $1.7T in FQ2.
Cross-border volume was up 132% Y/Y during the quarter, inclusive of the new contribution of Visa Europe.
Total processed transactions jumped up 42% to 26.3B.
Services revenue was up 17% to $2.0B.
Visa’s effective tax rate was 28.6% for the quarter.
Looking ahead, Visa expects revenue growth of 16% to 18% for the fiscal year on an adjusted basis. Annual operating margin in the mid 60s and an adjusted effective tax rate of around 30% are anticipated.
The company says it will buy back up to $5B worth of it stock.
Inventory overhang whacks bottom line at Mattel
Mattel (NASDAQ:MAT) is down 4.20% in AH trading after the toy company misses estimates with its Q1 report.
Global Barbie sales fell 13% during the quarter, while Fischer-Price sales fell 9%.
The company’s gross margin rate came in at 37.9%, well below the consensus estimate for a mark of 43.1%.
“Results were below our expectations due to the retail inventory overhang coming out of the holiday period,” warns CEO Margo Georgiadis.
“We are confident we have worked through the majority of this overhang and look forward to a strong launch of Disney’s Cars 3 theatrical release in the second quarter,” she adds.
Previously: Mattel misses by $0.15, misses on revenue (April 20)
Sell-side comes to New Residential defense
Sucked into the Ocwen Financial vortex today, New Residential (NYSE:NRZ) was down as much as 13% before closing the regular session off 7.65%.
To review, Ocwen handles the servicing for a sizable number of MSRs owned by New Residential (New Residential takes care of the excess servicing). Presumably, New Residential could move servicing elsewhere were something bad to happen to Ocwen.
Citi came out in defense of NRZ shortly before the close, and now comes FBR’s Jessica Levi-Ribner, telling clients to buy NRZ on the overreaction to the Ocwen news. It’s possible, she says, New Residential has already begun transferring servicing rights to its own name, thus protecting it from counter-party risk.
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