Categories Earnings, Finance, LATEST

Mastercard stock falls despite Q2 earnings beat

A marked increase in revenues lifted Mastercard’s (MA) earnings, which surpassed analysts’ forecast in the second quarter. However, shares of the payment services provider slipped from an all-time high following the announcement Thursday amidst concerns over the continuing squeeze on portability from rising expenses.

Adjusted earnings were $1.7 billion or $1.66 per share, higher than $1.2 billion or $1.10 per share recorded in the second quarter of 2017. Earnings came in above estimates.

Mastercard Q2 earnings beat estimates
Mastercard Q2 2018 earnings infographic

On an unadjusted basis, earnings of the New York-based financial services provider rose to $1.50 per share from $1.10 per share a year earlier. While the bottom line benefitted from a 20% rise in revenues, a sharp increase in operating expenses restricted the growth.

At $3.7 billion, revenues were slightly above Wall Street estimates. The upturn is attributable to an increase in switched transactions, cross-border volumes and gross dollar volume, which was partially offset by higher rebates and incentives. Excluding the effect of the new revenue recognition rules and acquisitions, revenue increased 14%.

Revenues benefitted from an increase in switched transactions, cross-border volumes and gross dollar volume

“We continue to invest for the long term and are pleased with the progress we are making in expanding our customer relationships and advancing our secure digital solutions. We believe our strategy of providing choice to our customers positions us well to expand our core business and address new opportunities,” said Mastercard CEO Ajay Banga.

RELATED: Visa Q2 Earnings beat estimates

During the three months ended June, Mastercard repurchased around 8.3 million shares for $1.5 billion.

The company has been quite successful in closing the gap with rival and industry leader Visa (V) in recent years, taking advantage of the new opportunities being offered by the payment solutions sector.

RELATED: Mastercard Q2 2018 earnings call transcript

After gaining 41% since January, Mastercard stock ended the last trading session at a record high but lost nearly 3% in early trading Thursday following the earnings release.

RELATED: Mastercard stock climbs on upbeat Q1

Mastercard Q1 2018 Earnings

Most Popular

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Target (TGT): A look at some of the challenges faced by the retailer in 3Q24

Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and

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