Mastercard Inc. (NYSE:MA) has lowered its growth forecast as the coronavirus impacts international travel.
The credit card company announced that it is lowering its three-week-old forecast for quarterly revenue growth as the spreading coronavirus curbs international travel and impacts e-commerce.
Specifically, Mastercard said it is knocking two to three percentage points off the prediction it made on an earnings conference call January 29. That translates to growth of 9% to 10% on a currency-neutral basis, excluding acquisitions.
Shares of both Mastercard and Visa Inc. dropped in after-hours trading Monday.
The short-lived forecast underscores how quickly the coronavirus is altering consumer behavior as it moves beyond China. Mastercard executives had previously taken comfort in the fact that much of the firm’s business into and out of China is e-commerce, which could potentially continue amid measures to contain the disease.
Mastercard’s shares fell 4.4% during regular trading Monday after a spike in infections in countries including South Korea and Italy triggered a global market selloff. The stock then dropped an additional 1.1% after hours at 6:30 p.m. in New York. Visa fell 1.7%.
They slumped $3.76, or 1.2%, soon after Tuesday's opening bell, to $320.91.
