Mastercard Inc Earnings: Here’s Why Shares are Down Now

Mastercard Incorporated (NYSE:MA) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.8%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Mastercard Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.23% to $6.23 in the quarter versus EPS of $5.36 in the year-earlier quarter.

Revenue: Rose 8.42% to $1.91 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mastercard Incorporated reported adjusted EPS income of $6.23 per share. By that measure, the company beat the mean analyst estimate of $6.17. It missed the average revenue estimate of $1.93 billion.

Quoting Management: “We are pleased with our first-quarter results as we delivered solid performance that met our expectations despite the mixed global economic environment,” said Ajay Banga, MasterCard president and CEO. “Since the start of the year, we have had steady momentum in new business, as well as product innovations. We signed new consumer credit agreements with Bank of America and TD Bank and secured significant wins in our APMEA region with Qantas, South Africa’s NedBank, and Japan’s Rakuten. We also signed an alliance with the Alibaba Group to explore opportunities in the Chinese market. In addition, we advanced our mobile and digital strategy with the commercial launch of MasterPass.”

Key Stats (on next page)…

Revenue increased 0.58% from $1.9 billion in the previous quarter. EPS increased 28.19% from $4.86 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $6.43 to a profit $6.34. For the current year, the average estimate has moved down from a profit of $25.65 to a profit of $25.48 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More from The Cheat Sheet