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Mastercard (MA) Q3 Earnings & Revenues Top on Higher Volumes

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Have you been eager to see how Mastercard Inc. (MA - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this leading financial services company’s earnings release this morning.

An Earnings Beat

Mastercard earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.23 and grew 23% year over year.

Better-than-expected earnings were primarily due to higher switched transactions, increase in cross border volume and the gains from acquisitions, partly offset by increase in rebates and incentives.

How Was the Estimate Revision Trend?

The earnings estimate revisions for Mastercard did not show any change prior to the earnings release.  But the same has increased 0.2% over the past 30 days.

Before posting earnings beat in Q3, the company delivered positive surprises in each of the last four quarters.

As a result, the company overall surpassed the Zacks Consensus Estimate by an average of 6.2% in the trailing four quarters.

Revenue Surpass Estimates

Mastercard revenues of $3.4 billion, exceeded the Zacks Consensus Estimate of $3.29 billion and was up 18% year-over-year.

Key Stats to Note

The company reported a 10% year-over-year increase in gross dollar volume to $1.4 trillion.

The company also witnessed an increase of 15% in cross-border volumes on a local currency basis.

Adjusted operating expenses increased 19% year over year to $1.5 billion.

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. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here).

How the Market Reacted So Far    

Mastercard’s shares were up nearly 1.4% in the pre-trading session. While the initial reaction shows that the investors have taken the results in their favor, the full-session’s price movement will provide a clear picture.

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

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