However, higher incentives as well as negative impacts from foreign exchange are expected to dampen the quarterly results. Increased spending, particularly in marketing and promotion, is also likely to weigh on earnings. Last quarter, operating expenses increased 1% on a currency neutral basis.
In the second quarter of 2019, Mastercard topped revenue and earnings expectations. Revenues increased 12% to $4.1 billion while adjusted EPS grew 14% to $1.89. Switched transactions were up 18%. On a local currency basis, cross-border volume rose 16% while both gross dollar volume and purchase volume increased 13%.
Also read: Mastercard Q2 2019 Earnings Conference Call Transcript
Shares of Mastercard have gained 28% so far this year. The stock has a strong Buy rating and the average price target is $317.31.
Mastercard’s competitor Visa (NYSE: V) reported Q4 2019 earnings results on Thursday, beating both revenue and profit expectations.