MasterCard Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component MasterCard Incorporated (NYSE:MA) reported net income above Wall Street’s expectations for the second quarter. Mastercard Incorporated is a multinational company, whose principal business is to process payments and to provide related services to financial institutions and other customers. Its main services are in support of the credit, debit, prepaid and related payment programs.

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MasterCard Incorporated Earnings Cheat Sheet for the Second Quarter

Results: 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.

Actual vs. Wall St. Expectations: MA beat the mean analyst estimate of $4.21 per share. It beat the average revenue estimate of $1.55 billion.

Quoting Management: “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.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 23.5% and in the fourth quarter of the last fiscal year, the figure rose 41.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 19 cents in the first quarter, by 11 cents in the fourth quarter of the last fiscal year, and by 40 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 14.8% to $1.5 billion in the first quarter. The figure rose 10.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.7% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Visa Inc. (NYSE:V), American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Fidelity National Information Services (NYSE:FIS), Green Dot Corporation (NYSE:GDOT), Global Payments Inc. (NYSE:GPN), Wright Express Corporation (NYSE:WXS), Net one UEPS Tech., Inc. (NASDAQ:UEPS), FleetCor Tech., Inc. (NYSE:FLT), and Euronet Worldwide, Inc. (NASDAQ:EEFT).

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(Source: Xignite Financials)