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Mastercard (MA) Q4 Earnings and Revenues Beat Estimates

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Have you been eager to see how Mastercard Incorporated (MA - Free Report) , performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based major exchange operator’s earnings release this morning.

An Earnings Beat

Mastercard reported adjusted earnings per share of $1.14 per share, beating the Zacks Consensus Estimate of $1.12. Earnings improved 33% year over year.

Improved revenues drove the upside.

Mastercard Incorporated Price and EPS Surprise

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 $1.12 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.

Revenues Beat

Mastercard’s revenues of $3.31 billion in the quarter increased 20% year over year. The Zacks Consensus Estimate was $3.26 billion.

Key Takeaways

Total adjusted operating expenses increased 17% to $1.6 billion. Operating margin contracted 40 basis points.

Gross dollar volume as well as purchase volume increased 13% in the fourth quarter.

As of Dec 31, 2017, debt increased 4.7% over 2016 end level to $5.4 billion.

The company has returned $4.7 billion to its shareholders in 2017.

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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