MasterCard Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component MasterCard, Inc. (NYSE:MA) will unveil its latest earnings on Wednesday, November 2, 2011. Mastercard 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 net income of $4.80 per share, a rise of 21.8% 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 $4.61. Between one and three months ago, the average estimate moved up. It has dropped from $4.82 during the last month. For the year, analysts are projecting profit of $17.70 per share, a rise of 26% 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 55 cents, reporting net income of $4.76 per share against a mean estimate of profit of $4.21 per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.71 billion in revenue this quarter, a rise of 19.6% from the year ago quarter. Analysts are forecasting total revenue of $6.58 billion for the year, a rise of 18.8% from last year’s revenue of $5.54 billion.

Analyst Ratings: Analysts are bullish on this stock with 25 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

A Look Back: In the second quarter, profit rose 32.8% to $608 million ($4.76 a share) from $458 million ($3.49 a share) the year earlier, exceeding analyst expectations. Revenue rose 22.1% to $1.67 billion from $1.36 billion.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 14.8% in the first quarter from the year earlier, climbed 10.8% in the fourth quarter of the last fiscal year from the year-ago quarter and 4.7% in the third quarter of the last fiscal year.

Competitors to Watch: Visa Inc. (NYSE:V), American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), 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 September 29, 2011 to October 27, 2011, the stock price had risen $20.94 (6.4%) from $328.21 to $349.15. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 7, 2011 when shares rose for seven-straight days, rising 6.4% (+$15.09) over that span. It saw one of its worst periods between September 27, 2011 and October 4, 2011 when shares fell for six-straight days, falling 9% (-$30.44) over that span. Shares are up $125.53 (+56.1%) year to date.

(Source: Xignite Financials)

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