Mastercard Inc, Nasdaq OMX Report Fourth Quarter Earnings

MasterCard and NASDAQ OMX released their latest earnings results before opening bell this morning. MasterCard reported adjusted earnings of 86 cents per share on $2.76 billion in revenue, while analysts had been expecting 85 cents per share in adjusted earnings and $2.5 billion in revenue. In the same quarter a year previously, the credit card payment firm reported $2.52 billion in revenue.

Nasdaq OMX’s net revenues rose 12% year over year to a new record of $599 million. Its non-GAAP diluted earnings rose 7% to 95 cents per share.

MasterCard shares fall after earnings

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MasterCard’s gross dollar volume rose 9% year over year to $1.2 trillion during the fourth quarter. Switched transactions rose 17% to 15.2 billion, while cross-border volumes rose 13% year over year. Higher rebates and incentives partially offset these gains, however. GAAP earnings were the same as non-GAAP earnings on a per-share basis at 96 cents, excluding one item. Non-GAAP net income was $933  million, while GAAP net income was $940 million.

“We’re pleased to have delivered strong results for the quarter and full year, driven by solid execution of our strategy and leveraging our differentiated service offerings,” MasterCard President and Chief Executive Ajay Banga said in a statement. “Our continued investments in digital, safety and security, data analytics, loyalty and processing position us well for future growth in our core business and new payment flows.”

Shares of MasterCard slumped by as much as 1.92% to $107.20 in premarket trades.

Nasdaq OMX swings to a per-share loss

Nasdaq OMX’s GAAP earnings fell by $2.23 per share year over year for a diluted loss of $1.35 per share. The firm took a pre-tax charge of $646 million, mostly in connection with the write-off of the eSpeed trade name. Nasdaq also realigned its reporting segments into a Corporate Services segment, which covers Listing Services and Corporate Solutions, and Market Technology as a standalone segment.

For this year, the company expects non-GAAP operating expenses of $1.26 billion to $1.3 billion. Shares of Nasdaq OMX were little changed in premarket trading at around $68.19.