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MasterCard (MA) to Grow from Shift to Electronic Payments
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On Aug 8, we issued our updated research report on MasterCard Inc. (MA - Free Report) . The company reported earnings per share of 96 cents, surpassing the Zacks Consensus Estimate of 90 cents. Earnings were up 13% year over year, on stronger net revenue and a lower tax rate. The improvement was partly offset by higher operating expense.
MasterCard, the leader in global payments, boosts a powerful brand, vast global acceptance network and strong business model. The company is poised for revenue growth led by a secular shift to electronic payments. Last month, MasterCard announced that it will acquire 92.4% of VocaLink, a leading provider of Automated Clearing House electronic payments’ services in the United Kingdom. This acquisition will strengthen the company’s position in the U.K. payments market.
Over the next few quarters, we expect MasterCard's earnings to suffer from challenging forex and international markets as well as higher rebates and incentives. Also, continued investments in China as well as in security, digital business and services will translate into higher expenses over the coming quarters.
MasterCard is making continued investments in upgrading its technology offering. It recently launched a new version of MasterPass, which will provide a digitized solution and it makes the company the first and only network to deliver an omni-channel, all-digital payment service for card issuers, merchants and consumers. Its MasterCard Digital Enablement Service (MDES), launched in 2014, also helped it to gain market share in digital payments.
Nonetheless, MasterCard faces litigation risk with respect to the recent reversal of the appeals court approval of the antitrust settlement reached in 2012. Apart from MasterCard, several other card issuing financial institutions, including the likes of Visa Inc. (V - Free Report) , and some U.S. merchants were parties to the settlement.
MasterCard carries a Zacks Rank #3 (Hold). Some better-ranked stocks in this space are Envestnet, Inc. (ENV - Free Report) , FleetCor Technologies, Inc. . Both these stocks carry a Zacks Rank #2 (Buy).
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MasterCard (MA) to Grow from Shift to Electronic Payments
On Aug 8, we issued our updated research report on MasterCard Inc. (MA - Free Report) . The company reported earnings per share of 96 cents, surpassing the Zacks Consensus Estimate of 90 cents. Earnings were up 13% year over year, on stronger net revenue and a lower tax rate. The improvement was partly offset by higher operating expense.
MasterCard, the leader in global payments, boosts a powerful brand, vast global acceptance network and strong business model. The company is poised for revenue growth led by a secular shift to electronic payments.
Last month, MasterCard announced that it will acquire 92.4% of VocaLink, a leading provider of Automated Clearing House electronic payments’ services in the United Kingdom. This acquisition will strengthen the company’s position in the U.K. payments market.
Over the next few quarters, we expect MasterCard's earnings to suffer from challenging forex and international markets as well as higher rebates and incentives. Also, continued investments in China as well as in security, digital business and services will translate into higher expenses over the coming quarters.
MASTERCARD INC Price and Consensus
MASTERCARD INC Price and Consensus | MASTERCARD INC Quote
MasterCard is making continued investments in upgrading its technology offering. It recently launched a new version of MasterPass, which will provide a digitized solution and it makes the company the first and only network to deliver an omni-channel, all-digital payment service for card issuers, merchants and consumers. Its MasterCard Digital Enablement Service (MDES), launched in 2014, also helped it to gain market share in digital payments.
Nonetheless, MasterCard faces litigation risk with respect to the recent reversal of the appeals court approval of the antitrust settlement reached in 2012. Apart from MasterCard, several other card issuing financial institutions, including the likes of Visa Inc. (V - Free Report) , and some U.S. merchants were parties to the settlement.
MasterCard carries a Zacks Rank #3 (Hold). Some better-ranked stocks in this space are Envestnet, Inc. (ENV - Free Report) , FleetCor Technologies, Inc. . Both these stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>