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Factors Setting the Tone for Mastercard's (MA) Q1 Earnings
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Mastercard Incorporated (MA - Free Report) is scheduled to release first-quarter 2022 earnings on Apr 28, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Mastercard’s first-quarter earnings per share is pegged at $2.17, which indicates an improvement of 24.7% from the prior-year quarter.
The consensus mark for revenues stands at $4.9 billion, suggesting growth of 18.1% from the year-ago reported number.
Earnings Surprise History
Mastercard boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average surprise being 10.42%. This is depicted in the chart below:
Mastercard’s first-quarter revenues are likely to have benefited from improved worldwide gross dollar volume (GDV), higher switched transactions and a continuous recovery in cross-border volumes. Improved consumer spending stemming from a gradual global economic recovery, higher pent-up demand and increased personal savings might have favored MA’s top line in the to-be-reported quarter.
Per the last earnings call, net revenue growth on a year-over-year basis is anticipated to lie at the high end of a high teens rate, on a currency-neutral basis, excluding acquisitions, in the first quarter.
Mastercard’s GDV (which denotes dollar volume of activity on Mastercard-branded cards during a particular period, on a local currency basis and U.S. dollar-converted basis) is likely to have benefited from increased usage of its debit and credit cards both within and outside the United States in the to-be-reported quarter. A diversified suite of card offerings provided by MA makes the portfolio one of the most widely used ones by shoppers while pursuing both online and offline payments.
The Zacks Consensus Estimate for Mastercard’s total GDV for all Mastercard-branded programs is pegged at $2 billion, which suggests a 17.7% rise from the prior-year quarter’s reported figure.
Meanwhile, switched transactions (the number of transactions initiated and switched through Mastercard’s network) are likely to have witnessed an uptick in the first quarter owing to improved consumer spending and increased contactless acceptance initiatives pursued by the technology company.
Rebounding cross-border travel, resulting from relaxations of border restrictions imposed by several countries such as the United States, U.K. and Canada, might have favored cross-border volumes of Mastercard. However, a surge in Omicron (a COVID variant) cases might dampen cross-border levels in the first quarter.
Solid volume and transaction growth coupled with new internode deal activity is likely to have resulted in higher rebates and incentives, which might have weighed on Mastercard’s first-quarter performance. Also, its operating expenses are likely to have remained elevated in the first quarter due to more spending incurred on advertising and marketing, increased data processing costs and escalating personnel costs. An elevated expense level might have negatively impacted MA’s margins in the to-be-reported quarter.
In the last earnings call, management forecast operating expenses to remain at the high end of high-single digits rate year over year in the first quarter, on a currency-neutral basis, excluding acquisitions and special lines.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Mastercard this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here.
Earnings ESP: Mastercard has an Earnings ESP of -0.28%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
While earnings beat looks uncertain for Mastercard, here are some companies from the Business Services space that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time:
Cross Country Healthcare, Inc. (CCRN - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #1, currently. The Zacks Consensus Estimate for Cross Country Healthcare’s first-quarter 2022 earnings is pegged at $1.40, which indicates an increase of more than two-fold from the prior-year quarter's reported figure.
CCRN beat earnings estimates in each of the trailing four quarters in 2021.
FLEETCOR Technologies, Inc. has an Earnings ESP of +1.40% and a Zacks Rank of 3. The Zacks Consensus Estimate for FLEETCOR Technologies’ first-quarter 2022 earnings is pegged at $3.53, suggesting 25.2% from the year-ago quarter’s reported number.
The bottom line of FLT beat estimates in each of the trailing four quarters in 2021.
WEX Inc. (WEX - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for WEX's first-quarter 2022 earnings stands at $2.71, which highlights a surge of 51.4% from the prior-year quarter's reported figure.
WEX beat earnings estimates in each of the four reported quarters in 2021.
Image: Bigstock
Factors Setting the Tone for Mastercard's (MA) Q1 Earnings
Mastercard Incorporated (MA - Free Report) is scheduled to release first-quarter 2022 earnings on Apr 28, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Mastercard’s first-quarter earnings per share is pegged at $2.17, which indicates an improvement of 24.7% from the prior-year quarter.
The consensus mark for revenues stands at $4.9 billion, suggesting growth of 18.1% from the year-ago reported number.
Earnings Surprise History
Mastercard boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average surprise being 10.42%. This is depicted in the chart below:
Mastercard Incorporated Price and EPS Surprise
Mastercard Incorporated price-eps-surprise | Mastercard Incorporated Quote
Factors to Note
Mastercard’s first-quarter revenues are likely to have benefited from improved worldwide gross dollar volume (GDV), higher switched transactions and a continuous recovery in cross-border volumes. Improved consumer spending stemming from a gradual global economic recovery, higher pent-up demand and increased personal savings might have favored MA’s top line in the to-be-reported quarter.
Per the last earnings call, net revenue growth on a year-over-year basis is anticipated to lie at the high end of a high teens rate, on a currency-neutral basis, excluding acquisitions, in the first quarter.
Mastercard’s GDV (which denotes dollar volume of activity on Mastercard-branded cards during a particular period, on a local currency basis and U.S. dollar-converted basis) is likely to have benefited from increased usage of its debit and credit cards both within and outside the United States in the to-be-reported quarter. A diversified suite of card offerings provided by MA makes the portfolio one of the most widely used ones by shoppers while pursuing both online and offline payments.
The Zacks Consensus Estimate for Mastercard’s total GDV for all Mastercard-branded programs is pegged at $2 billion, which suggests a 17.7% rise from the prior-year quarter’s reported figure.
Meanwhile, switched transactions (the number of transactions initiated and switched through Mastercard’s network) are likely to have witnessed an uptick in the first quarter owing to improved consumer spending and increased contactless acceptance initiatives pursued by the technology company.
Rebounding cross-border travel, resulting from relaxations of border restrictions imposed by several countries such as the United States, U.K. and Canada, might have favored cross-border volumes of Mastercard. However, a surge in Omicron (a COVID variant) cases might dampen cross-border levels in the first quarter.
Solid volume and transaction growth coupled with new internode deal activity is likely to have resulted in higher rebates and incentives, which might have weighed on Mastercard’s first-quarter performance. Also, its operating expenses are likely to have remained elevated in the first quarter due to more spending incurred on advertising and marketing, increased data processing costs and escalating personnel costs. An elevated expense level might have negatively impacted MA’s margins in the to-be-reported quarter.
In the last earnings call, management forecast operating expenses to remain at the high end of high-single digits rate year over year in the first quarter, on a currency-neutral basis, excluding acquisitions and special lines.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Mastercard this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here.
Earnings ESP: Mastercard has an Earnings ESP of -0.28%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: MA currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
While earnings beat looks uncertain for Mastercard, here are some companies from the Business Services space that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time:
Cross Country Healthcare, Inc. (CCRN - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #1, currently. The Zacks Consensus Estimate for Cross Country Healthcare’s first-quarter 2022 earnings is pegged at $1.40, which indicates an increase of more than two-fold from the prior-year quarter's reported figure.
CCRN beat earnings estimates in each of the trailing four quarters in 2021.
FLEETCOR Technologies, Inc. has an Earnings ESP of +1.40% and a Zacks Rank of 3. The Zacks Consensus Estimate for FLEETCOR Technologies’ first-quarter 2022 earnings is pegged at $3.53, suggesting 25.2% from the year-ago quarter’s reported number.
The bottom line of FLT beat estimates in each of the trailing four quarters in 2021.
WEX Inc. (WEX - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for WEX's first-quarter 2022 earnings stands at $2.71, which highlights a surge of 51.4% from the prior-year quarter's reported figure.
WEX beat earnings estimates in each of the four reported quarters in 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.