Free Annual Reports
MasterCard Third Quarter Earnings
Tickers in this Article »
MA
MasterCard Incorporated (NYSE:MA) announced its results for the most recent quarter on October 31, 2012. Mastercard is a multinational company whose principal business is to process payments and to provide related services to financial institutions and other customers. Its main services are in support of the credit, debit, prepaid, and related payment programs.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: MasterCard beat expectations with its latest EPS and revenue figures. The company reported $6.17 per share versus the $5.57 per share estimate and revenues of $1.92 billion versus the $1.73 billion estimate. EPS rose 9.6% while revenue climbed 5.5% from the same period last year. MasterCard's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the third quarter was $772 million. According to the reported number, this is up 7.7% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "MasterCard continues to drive solid financial performance and focus on executing key deals, investments and partnerships," said Ajay Banga, MasterCard president and CEO. "We won significant business in Europe this quarter with Nordea, Credit Agricole and CSOB in the Czech Republic and, in the U.S., we acquired loyalty reward provider Truaxis to better connect consumers with targeted, relevant offers."
A Look Back: Net income has dropped 2.6% year-over-year on average across the last five quarters. Performance was hurt by a 95.4% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $6.12 per share, a drop from $6.19. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $22.19 a share to $22.06 over the last 60 days.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: MasterCard beat expectations with its latest EPS and revenue figures. The company reported $6.17 per share versus the $5.57 per share estimate and revenues of $1.92 billion versus the $1.73 billion estimate. EPS rose 9.6% while revenue climbed 5.5% from the same period last year. MasterCard's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the third quarter was $772 million. According to the reported number, this is up 7.7% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "MasterCard continues to drive solid financial performance and focus on executing key deals, investments and partnerships," said Ajay Banga, MasterCard president and CEO. "We won significant business in Europe this quarter with Nordea, Credit Agricole and CSOB in the Czech Republic and, in the U.S., we acquired loyalty reward provider Truaxis to better connect consumers with targeted, relevant offers."
A Look Back: Net income has dropped 2.6% year-over-year on average across the last five quarters. Performance was hurt by a 95.4% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $6.12 per share, a drop from $6.19. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $22.19 a share to $22.06 over the last 60 days.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
