Mastercard thrives on consumer spending; reports record Q3 results
October 30, 2018
Revenues of Mastercard (MA) rose sharply and hit a record high in the third quarter as cardholders spent more on merchandise and services, encouraged by the growing economy and buoyant market sentiment. The results topped Wall Street estimates, sending the company’s shares higher in the pre-market Tuesday.
Adjusted earnings climbed to .9 billion or .78 per share in the September quarter from .4 billion or .34 per share in the prior-year quarter, far exceeding Wall Street estimates. On an unadjusted basis, earnings of the New York-based credit card firm rose to .82 per share from .34 per share a year earlier.
Revenues increased 15% to .9 billion, surpassing the forecast. The underlying revenue growth was driven mainly by double-digit growth in switched transactions, cross-border volumes and gross dollar volume. Overall, operations continued to benefit from investments in digital technology and the management’s initiatives to broaden the bank’s co-branding partner network. Meanwhile, rebates and incentives weighed down on the bottom-line performance.
Mastercard Inc. (NYSE: MA) Q3 2018 Earnings Call