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Mastercard's (MA) Q3 Earnings and Revenues Beat, Rise Y/Y

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Mastercard Inc.'s (MA - Free Report) third-quarter 2021 earnings of $2.37 per share beat the Zacks Consensus Estimate by 8.72%. The same was up 48% year over year, courtesy of higher consumer spending.

This world’s leading payment network company’s revenues of $4.98 billion surpassed the Zacks Consensus Estimate by 0.54% and were also up 30% year over year.

Gross dollar volume (represents the aggregated dollar amount of purchases made and cash disbursements obtained with MasterCard-branded cards) rose 20% to $2 trillion. Cross-border volumes (a key measure that tracks spending on cards beyond the issuing country) grew 52% on local-currency basis.

Mastercard Incorporated Price, Consensus and EPS Surprise

Mastercard Incorporated Price, Consensus and EPS Surprise

Mastercard Incorporated price-consensus-eps-surprise-chart | Mastercard Incorporated Quote

Switched transactions, which indicate the number of times a company’s products were used to facilitate transactions, were up 25% year over year. This shows that customers used the company’s cards more frequently in the quarter.

Rebates and incentives grew 35%, driven by higher growth in volume and transactions, and new and renewed deals.

Other revenues grew 37% year over year.  This included a 10% increase on acquisitions. Remaining growth was driven, primarily by the company’s Cyber & Intelligence and Data & Services solutions.

As of Sep 30, 2021, the company’s customers issued 2.9 billion Mastercard and Maestro-branded cards.

During the quarter, Mastercard repurchased shares for $1.6 billion and paid out $434  million  worth dividend.

Capital Position (as of Sep 30, 2021)

Total assets of $35.4 billion were up 5.4% from the level as of Dec 31, 2020. Total debt of $13.2 billion was up 9.8% from the level on Dec 31, 2020 level.

Other Business Services Sector Releases

Some other companies in the business services space that already released results are Equifax Inc. (EFX - Free Report) , American Express Co. (AXP - Free Report) and Discover Financial Services (DFS - Free Report) , which beat earnings estimates by 7.6%, 27.53% and 3.51%, respectively.

Zacks Rank

Mastercard carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.