S&P 500 (NYSE:SPY) component MasterCard, Inc. (NYSE:MA) will unveil its latest earnings on Wednesday, August 3, 2011. 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.
MasterCard, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of $4.21 per share, a rise of 20.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $4.15. Between one and three months ago, the average estimate moved up, and has risen from $4.20 during the last month. For the year, analysts are projecting net income of $17.04 per share, a rise of 21.3% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 19 cents, reporting profit of $4.29 per share against a mean estimate of net income of $4.10 per share.
Wall St. Revenue Expectations: On average, analysts predict $1.55 billion in revenue this quarter, a rise of 14% from the year ago quarter. Analysts are forecasting total revenue of $6.34 billion for the year, a rise of 14.4% from last year’s revenue of $5.54 billion.
Analyst Ratings: Analysts are bullish on this stock with 26 analysts rating it as a buy, one rating it as a sell and four rating it as a hold.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 23.5% while it rose 41.2% in the fourth quarter of the last fiscal year and 14.6% 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 first quarter. The figure rose 10.8% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.7% in the third quarter of the last fiscal year from the year-ago quarter and 6.6% in the second quarter of the last fiscal year.
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).
Stock Price Performance: During May 2, 2011 to August 2, 2011, the stock price had risen $23.33 (8%) from $275.16 to $298.49. The stock price saw one of its best stretches over the last year between October 12, 2010 and October 21, 2010 when shares rose for eight-straight days, rising 9.5% (+$21.03) over that span. It saw one of its worst periods between February 15, 2011 and February 23, 2011 when shares fell for six-straight days, falling 4.7% (-$11.97) over that span. Shares are up $74.38 (+33.19%) year to date.
(Source: Xignite Financials)