MasterCard Pops on Spending Growth
In sharp contrast to the drop seen in shares of Visa (NYSE:V) , shares of MasterCard (NYSE:MA) were sent higher on Thursday morning following the company’s third quarter results before the market open. In recent week the credit space has come onto the radar, as of today the entire sector has reported somewhat mixed results. Many analysts and traders alike have used the company’s results as a barometer on both the strength of the financial sector and consumer discretionary space. The company announced its net income rose to $879 million, or $7.27 per share, from $772 million, or $6.17 per share, last year. On the top line MasterCard watched its revenue rise 16 percent to $2.22 billion for the three months ended Sept. 30, not too bad at all.
The company successfully generated strong growth through its overseas business segment. Excluding the U.S., the amount people spend using MasterCard-branded cards rose almost 19 percent on a local-currency basis. These results greatly outperformed the company’s domestic market segment, in the U.S., spending rose close to 10 percent. These results beat analysts’ expectations for profit of $6.94 per share and on revenue of $2.14 billion. MasterCard was able to beat analyst projections by nearly 5 percent on the bottom line alongside a modest beat on the top line.
Going forward, analysts will be watching to see if spending and card volume in the company’s domestic market segment improve to international growth levels. Strong growth out of this segment signals economic strength for the country and stronger profits for the company. At the time of this writing, shares of the company were to the upside by by more than 1 percent, or $8, to $725 per share. Year to date shareholders have watched their shares rise by an incredible 50 percent.
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