Visa Inc. says its second-quarter financial results are likely to take a hit amidst the Coronavirus epidemic

The Coronavirus continues to wreak havoc on businesses from across the globe. The virus has so far infected over 90,000 people from across the globe and has caused more than 3,000 deaths. In an attempt to contain the spread of the virus, businesses are cutting back on regular operations in mainland China and elsewhere that have been branded as “high risk” regions like Italy.

Coronavirus is expected to weigh heavily on the global economy which is why countries like Australia and the U.S have already opted for a rate cut to provide a stimulus for economic growth in 2020. The Reserve Bank of Australia cut rates to 0.50% (a record low) on Tuesday while the U.S Fed implemented an emergency rate cut for the first time in over a decade.

Visa Inc. Says It Is Likely To Fall Shy Of Its Previous Guidance For Q2

Payment services like Mastercard have recently warned a hit to its financial performance in the current quarter. In a recent development, Visa also joined the league with its announcement on Tuesday that its 2^nd quarter earnings report is likely to be weighed due to the rising complications of Coronavirus. The American multinational financial services company said that it is expected to fall shy of its previous guidance for the second quarter.

In comparison to the fiscal first quarter, Visa had previously estimated its revenue to grow by a low double-digit in the second quarter. In its announcement on Tuesday, however, the company declared that a 2.5 to even 3.5 percentage points of drop is expected in its quarterly revenue due to the Coronavirus driven business disruptions across the globe.

Other prominent payment services that have already warned of a possible decline in the Q1 performance report include Mastercard and PayPal. Both of these services had also attributed the imminent decline to the health emergency in China.

Visa Inc. Performance In The Stock Market

The world’s largest network for payments further added that the epidemic has fueled a sharp decline in travel and tourism to as well as from Asia. Asia being the primary market for Visa Inc., its financial performance is likely to take a massive hit due to the virus outbreak. The company also commented that the full spectrum of virus impact is still not mirrored in its revised guidance for the current quarter.

At the time of writing, Visa is exchanging hands at around $186 per share in the stock market that marks just under 3% decline in 2020 so far. Its performance in 2019, however, remained largely upbeat with an annual gain of just over 40%.