Categories AlphaGraphs, Earnings, Finance, LATEST

Mastercard (NYSE: MA) Q3 revenue up 15%; earnings top expectations

Mastercard (NYSE: MA) reported higher earnings and revenues for the third quarter, which also topped expectations. The credit card firm’s stock gained early Tuesday, following the announcement.

Mastercard (NYSE) Q3 revenue, earnings beat Street view

Third-quarter revenues increased 15% annually to $4.5 billion and surpassed the forecast. The top-line growth was spurred by an 20% increase in switched transactions and a sharp increase in cross-border volumes.

Growth Drivers

Adding to the top-line growth, gross dollar volume rose 14% during the quarter, while purchase volume moved up 15%. The positive factors were partially offset by promotional offers such as rebates and incentives, pursuant to fresh and renewed agreements and volume growth. The company’s partners had issued 2.6 billion Mastercard and Maestro-branded cards as of September 2019.

Also see: American Express tops Q3 earnings view

Adjusted earnings advanced to $2.15 per share from $1.78 per share in the third quarter of 2018. Earnings also came in above analysts’ forecast. Reported profit moved up to $2.1 billion or $2.07 per share from $1.9 billion or $1.82 per share a year earlier.

Stock Buyback

During the quarter, the company repurchased around 6.4 million shares for $1.8 billion and paid $335 million in dividends.

CEO Ajay Banga said, “We have recently expanded several key customer relationships, announced our Mastercard Track suite of B2B solutions and launched the faster, more secure click-to-pay online checkout experience. In addition, we are looking forward to enhancing our multi-rail reach and capabilities through the planned acquisition of Nets’ real-time payment and billing solutions.”

Competition

Mastercard’s competitor Visa (NYSE: V) reported Q4 2019 earnings results last week, beating both revenue and profit expectations.

Related: MasterCard Q2 2019 Earnings 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. It moved up during Tuesday’s pre-market trading after the company reported the quarterly results.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top