Mastercard Inc Beats Earnings Estimates

Mastercard Inc (NYSE:MA) released the earnings results from the third quarter before opening bell this morning, posting diluted earnings of 87 cents per share, a 19% increase, on $2.5 billion in revenue, a 13% increase year over year. The earnings number excludes impacts from acquisitions, which had a 2-cent dilutive impact on the results.

Analysts had been looking for earnings of 78 cents per share on $2.45 billion in revenue. In the same quarter last year, Mastercard posted sales of $2.22 billion and earnings of 73 cents per share.

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Key metrics from Mastercard’s earnings report

MasterCard reported a 12% increase in gross dollar volume, which rose to $1.2 trillion, a 15% increase in cross-border volume, and a 10% increase in processed transactions, which rose to $11 billion. All three increases drove the credit card services provider’s net revenue increase. Higher incentives and rebates partially offset these increases.

Worldwide purchase volume rose 11% to $843 billion. As of the end of the quarter, MasterCard’s customers had issued 2.1 billion MasterCard and Maestro credit cards. Total operating expenses rose 12% to $1.1 billio due to strategic investments. Other expenses were $2 million due to higher interest rate expenses in connection with the March debt issuance.

“We delivered strong results for the quarter, reporting double-digit revenue and net income growth, despite a mixed economic environment,” said MasterCard President and CEO Ajay Banga in a statement this morning. “We also continue to invest and partner to make payments safer, easier and faster. Within the past two months alone, we opened our new technology hub in New York City, delivered our technology and security protocols as part of the launch of Apple Pay and partnered with the Transport for London to deliver contactless payments system-wide.”

MasterCard repurchases shares

During the quarter, the company bought back about 5.3 million Class A common shares for $404 million. So far this quarter, MasterCard has bought back 1.7 million shares for $121 million. There is $310 million left on the company’s current repurchase authorization.