(MA - Analyst Report
) recently beat the Zacks Consensus Estimate by $0.11 for a 16% positive earnings surprise. Problem is, estimates has move lower and that has pushed the
stock down to a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today.
On January 29, the company reported earnings of $0.79 per share, with the Zacks Consensus Estimate
calling for $0.68. That $0.11 beat translates into a 16% positive earnings surprise. Despite the beat, estimates have moved lower - and future earnings estimates are the foundation of the Zacks Rank.
Mastercard advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions and provides industry-leading analysis and consulting services to financial institution customers and merchants. Its family of brands include MasterCard, Maestro and Cirrus.
MA has a very strong earnings history, with the last two years seeing 6 beats, one meet and one miss. That is pretty good, so the issue must be the outlook. Lower earnings estimates are a key factor in why the stock is a Zacks Rank #5 (Strong Sell)
The Zacks Consensus Estimate for 2016
has been falling for the last several months. It was as high as $4.04 and has since moved to $3.70.
The Zacks Consensus Estimate for 2017 also recently moved a lot lower. The number was $4.54 in December, but is now down to $4.29.
Zacks has developed a chart that helps investors see how
earnings estimates have
the price of the stock over the last several years. We call
this chart the
consensus chart, and each color coded lines represents
analyst estimates over a
designated year. As estimates increase, the stock tends to
follow. The Zacks
impacted by earnings estimate increases, beats and
incorporates the idea of
agreement and magnitude. As a
Zacks Rank #5 (Strong Sell) we see that estimates are moving
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service , where he recommends the
stocks in the portfolio.