MasterCard Incorporated (MA - Free Report) , is one of the leading payment solution companies. Over 1 billion MasterCard-branded cards are currently in circulation, with total annual purchase volume of over $3 trillion.
It boasts of a well-established brand and extensive merchant-acceptance network.
The company has generated strong earnings growth in recent years driven by solid revenue growth led by growth in spending, shift toward spending on cards, pricing increases.
MasterCard has also been consistently expanding its geographic footprint, which has resulted in an increase in membership. This, in turn, is expected to boost the revenues of the company.
New global agreement wins and tie ups with regional banks in U.S. has also increased its client base.
Moreover, MasterCard enjoys ample competitive advantage and generates a healthy cash flow, which supports efficient capital deployment by generating incremental shareholder value.
MasterCard has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 5.2%.
Currently, MasterCard has a Zacks Rank #3 (Hold). But that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MasterCard beats on earnings. Our consensus called for EPS of 90 cents, and the company reported EPS of 96 cents and was up 13% year over year.
Revenue: Revenues surpassed our estimate. Our consensus called for revenues of $2.6 billion, and the company reported revenues of $2.69 billion.
Key Stats to Note: The company reported an increase in cross border volumes of 10%, processed transactions increased 14% to $13.7 billion. Worldwide purchase volume during the quarter was up 9% on a local currency basis.
Total operating expenses were $1.21 billion up 12% year over year. The company delivered an operating margin of 55.2%.
MasterCard’s effective tax rate was 27.9% in reported quarter , versus a rate of 25.8% in the year ago quarter.
Check back later for our full write up on this MA earnings report later!
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
MasterCard Incorporated (MA - Free Report) , is one of the leading payment solution companies. Over 1 billion MasterCard-branded cards are currently in circulation, with total annual purchase volume of over $3 trillion.
It boasts of a well-established brand and extensive merchant-acceptance network.
The company has generated strong earnings growth in recent years driven by solid revenue growth led by growth in spending, shift toward spending on cards, pricing increases.
MasterCard has also been consistently expanding its geographic footprint, which has resulted in an increase in membership. This, in turn, is expected to boost the revenues of the company.
New global agreement wins and tie ups with regional banks in U.S. has also increased its client base.
Moreover, MasterCard enjoys ample competitive advantage and generates a healthy cash flow, which supports efficient capital deployment by generating incremental shareholder value.
MasterCard has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 5.2%.
Currently, MasterCard has a Zacks Rank #3 (Hold). But that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MasterCard beats on earnings. Our consensus called for EPS of 90 cents, and the company reported EPS of 96 cents and was up 13% year over year.
Revenue: Revenues surpassed our estimate. Our consensus called for revenues of $2.6 billion, and the company reported revenues of $2.69 billion.
Key Stats to Note: The company reported an increase in cross border volumes of 10%, processed transactions increased 14% to $13.7 billion. Worldwide purchase volume during the quarter was up 9% on a local currency basis.
Total operating expenses were $1.21 billion up 12% year over year. The company delivered an operating margin of 55.2%.
MasterCard’s effective tax rate was 27.9% in reported quarter , versus a rate of 25.8% in the year ago quarter.
Check back later for our full write up on this MA earnings report later!
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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