Financial stocks were declining in afternoon trade, with the NYSE Financial Sector Index falling 0.4% and the S&P Financial 100 Index retreating 0.6%.
In company news, Visa Inc. ( V ) declined Friday, with the credit card company and Dow component responsible for much of of Friday's decline for the blue-chip index. It cut its future guidance, prompting several analysts to reduce their earnings forecasts for the company.
"We feel very confident that the headwinds will dissipate," CEO Charles Scharf explained. "What we don't know is the timing."
The disappointing outlook upstaged better-than-expect earnings for the three months ended June 30, with the company reporting an 11% increase to $1.36 billion on strong global payments volume and processed transactions. Revenue grew 5% to $3.16 billion.
Several analysts their lowered earnings estimates following V's results. Credit Suisse cut its FY14 earnings estimate from by $0.03 to $9.05 per share and trimmed its FY15 outlook by $0.21 to $10.30 per share to "account for lower cross border fees and higher rebates and incentives, partially offset by lower tax rate and more buyback."
The research shop kept its price target of $250 a share.
Citigroup also revised its FY15 and FY16 EPS estimates by $0.10 per share to "reflect a more cautious view on payment/revenue growth rates," also writing V's "near-term revenue trends are disappointing."
V shares were down almost 4% in recent trade at $214.05 apiece, earlier sinking to a session low of $211.34 a share. The stock has a 52-week range of $170.99 a share, climbing about 10.6% over the past 12 months.
In other sector news,
(+) CYN, (+3.1%) Earns $1.11 per share during Q2, beating consensus view by $0.14.
(-) EPR, (-10.5%) Q2 revenue rises 11.1% year over year to $91.8 mln but trails Street view by $990,000. Adjusted funds from operations of $0.97 per share match estimates. Confirms FY14 adjusted FFO of $4.00 to $4.10, in-line with $4.07 consensus.
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