A generic image of a stock chart on a display
Markets

MasterCard’s Q2 Profit Jumps 31%, Beating View (MA)

Credit card issuer MasterCard Incorporated ( MA

) on Tuesday said its second quarter profit surged 31% from last year, beating analyst estimates, although its revenue fell just shy of expectations.

The Purchase, New York-based company reported second quarter net income of $458 million, or $3.49 per share, compared with $349 million, or $2.67 per share, in the year-ago period.

On average, Wall Street analysts expected a smaller profit of $3.33 per share.

Meanwhile, revenue rose a more modest 6.7% from last year, to $1.37 billion, narrowly missing analyst expectations.

This year's second results were bolstered substantially by the company's lower spending. It cut costs by 10.4% in the quarter, as the benefits of layoffs began to take hold.

MasterCard shares fell $4.31, or -2.1%, in premarket trading Tuesday.

The Bottom Line

We removed shares of MA from our recommended list back on May 6, when the stock was trading at $237.94. The company has a .30% dividend yield, based on last night's closing stock price of $202.52. The stock has technical support in the $195 price area. If the shares can firm up, we see overhead resistance around the $210-$214 price levels. We would remain on the sidelines for now.

MasterCard Incorporated ( MA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MA

Other Topics

Stocks

Latest Markets Videos