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Mastercard (MA) Q1 Earnings and Revenues Beat Estimates

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Have you been eager to see how Mastercard Incorporated (MA - Free Report) , performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based financial services company.

An Earnings Beat

Mastercard reported adjusted earnings per share of $1.50 per share, beating the Zacks Consensus Estimate of $1.26. Earnings improved 43% year over year (on a currency neutral basis). Improved revenues drove the  earnings upside.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Mastercard depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $1.26 per share over the last 7 days.

Mastercard has a solid earnings surprise history. The company surpassed the Zacks Consensus Estimate by an average of 5.99% in the trailing four quarters.

Mastercard Incorporated Price and EPS Surprise

Revenues Beat

Mastercard’s revenues of $3.6 billion in the quarter increased 27% year over year (on a currency neutral basis). The Zacks Consensus Estimate was $3.25 billion.

Key Takeaways

Total adjusted operating expenses increased 32% to $1.6 billion. Operating margin contracted 140 basis points to 54.2%.

Gross dollar volume increased 14% while cross-border volumes were up 21% on a local currency  basis.

The company’s margins gained from a  lower tax rate of 17.3% in the first quarter compared with 26.9% in the year ago quarter.

As of Mar 31, 2018, the company’s customers had issued 2.4 billion Mastercard and Maestro-branded cards, adjusted for the impact of the Venezuela deconsolidation.

What Zacks Rank Says

Mastercard carries a Zacks Rank #2 (Buy). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Mastercard earnings report!

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