Have you been eager to see how MasterCard Inc.MA , a technology company in the global payments industry, performed in Q4 in comparison with the market expectations? Let's quickly scan through the key facts from Purchase, NY-based Company's earnings release this morning:
An Earnings Beat
MasterCard reported earnings per share of 86 cents per share, beating the Zacks Consensus Estimate of 85 cents.
Increased revenues primarily aided earnings beat.
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 85 cents over the last 7days.
MasterCard has a decent earnings surprise history. Overall, the company surpassed the Zacks Consensus Estimate by an average of 8.6% in the trailing four quarters.
Mastercard Incorporated Price and EPS Surprise
Revenue Came Lower Than Expected
MasterCard's revenues of $2.76 billion lagged the Zacks Consensus Estimate was $2.78 billion. However, it increased 9.5% year over year.
- The company reported an increase in cross border volumes of 13%.
- Switched transactions increased 17% to $15.2 billion.
- Total operating expenses were $1.39 billion down 1.2% year over year.
- During the reported quarter, MasterCard repurchased nearly 11 million shares at a cost of $1.1 billion.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for MasterCard. 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.
How the Market Reacted So Far
Following the earnings release, MasterCard shares were down 1.8% in the pre-trading session. This is in line with what the stock witnessed in the prior-day's session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session's price movement may indicate a different picture.
Check back later for our full write up on this MasterCard earnings report!
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