Mastercard Earnings: Here’s Why Investors are Excited Now

Mastercard Incorporated (NYSE:MA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.09%.

Mastercard Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.19% to $6.96 in the quarter versus EPS of $5.65 in the year-earlier quarter.

Revenue: Rose 15.16% to $2.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mastercard Incorporated reported adjusted EPS income of $6.96 per share. By that measure, the company beat the mean analyst estimate of $6.3. It beat the average revenue estimate of $2 billion.

Quoting Management: “We had a very good second quarter supported by increases in volume and transactions in all regions of the world despite slow economic growth globally,” said Ajay Banga, MasterCard president and CEO. “In addition to solid business performance, I am also pleased to report that our financial inclusion initiatives are having a meaningful impact. This year alone, we have launched nine programs in tandem with government entities and other partners in emerging markets which are designed to bring much needed financial access, convenience and security to more than 350 million people globally who previously would not have had access to financial products.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 11.72% from $6.23 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $6.89 and has not changed. For the current year, the average estimate has moved up from a profit of $25.39 to a profit of $25.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]