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

Earnings calendar for the week of June 14

Latest economic data evoked mixed sentiment this week -- the rebound in economic activity has raised inflation concerns while jobless claims declined for the sixth week in a row. The

GameStop (GME) Earnings: Q1 loss narrows on 25% sales growth

Video game retailer GameStop Corp. (NYSE: GME), which has become the talk of the town after the unprecedented stock rally in recent weeks, reported a narrower loss for the first

Should you invest in Steel Dynamics (STLD) stock after 78% rally?

The steel industry managed to shrug off the pandemic blues earlier than expected as the recovery in industrial activity pushed up demand. With the vaccination drive and the government’s aggressive

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