MasterCard and Prudential May Lead Financial Stocks Higher

MasterCard Incorporated (NYSE:MA) reported net income above Wall Street’s expectations for the second quarter. Net income for MasterCard Incorporated rose to $608 million ($4.76 per share) vs. $458 million ($3.49 per share) in the same quarter a year earlier. This marks a rise of 32.8% from the year earlier quarter. Revenue rose 22.1% to $1.67 billion from the year earlier quarter. MA beat the mean analyst estimate of $4.21 per share. It beat the average revenue estimate of $1.55 billion.

“Solid global performance, including strong increases in volume and processed transactions, fueled double-digit revenue growth this quarter,” said Ajay Banga, MasterCard president and chief executive officer. “While payment volumes have risen across our base customers, we’re also seeing new business such as the portfolio conversions of SunTrust and Sovereign, as well as new processing relationships in the Netherlands and in Brazil, contribute to growth.”

Competitors to Watch: Visa Inc. (NYSE:V), American Express Company (NYSE:AXP), Capital One Financial (NYSE:COF) Discover Financial Services (NYSE:DFS), Citigroup (NYSE:C), Bank of America (NYSE:BAC), and JP Morgan (NYSE:JPM).

Prudential Financial, Inc. (NYSE:PRU) reported its results for the second quarter. Net income for the life insurance company fell to $838 million ($1.68 per share) vs. $1.08 billion ($1.70 per share) a year earlier. This is a decline of 22.2% from the year earlier quarter. PRU beat the mean analyst estimate of $1.55 per share.

“Our organic business growth in U.S. and international markets is bolstered by the expanded distribution opportunities and client base from the Star and Edison businesses we acquired in Japan earlier this year, with business integration on track,” said Chairman and Chief Executive Officer John Strangfeld.

Competitors to Watch: MetLife, Inc. (NYSE:MET), ING Groep N.V. (NYSE:ING), Prudential Public Ltd. Co. (NYSE:PUK), Torchmark Corporation (NYSE:TMK), Lincoln National Corp. (NYSE:LNC), and AFLAC Incorporated (NYSE:AFL).