Mastercard (NYSE: MA) shares edged up 1% during premarket trading on Tuesday after the financial services giant reported first-quarter revenue of $3.9 billion, up 9% year-over-year, and higher than analysts’ projection of $3.88 billion. The top line growth was spurred by a 17% growth in switched transactions.
Fourth-quarter adjusted earnings of $1.78 per share also surpassed analysts’ projection of $1.66 per share.
In a steady rally, Mastercard shares have gained almost 30% so far this year. In the trailing 52 weeks, the stock has gained almost 39%.
CEO Ajay Banga said, “We continue to make significant progress, developing innovative new products with partners like Apple and Goldman Sachs, expanding the geographic footprint of our real-time payment solutions, and announcing several acquisitions to advance our cross-border payments, safety and security, and merchant engagement strategies.”
While Gross dollar volume (GDV) increased 12% to $1.5 trillion, purchase volume grew 12 during the quarter.
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Last week, rival Visa Inc (NYSE: V) reported an 8% growth in second-quarter revenues to $5.5 billion, while net income jumped 14% to $3 billion.
The quarterly results come on the heels of Visa beating Mastercard after months of intense pricing battle to finally buy Earthport for $320 million. With Mastercard backing out of the bidding, Visa will add the UK-based company that is a pioneer in cross-border payments.
(The story will be updated with an earnings infographic)
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