Mastercard (MA) stock jumped early Wednesday after first-quarter earnings topped views.
XEstimates: Earnings per share of $1.26, a 25% gain, on a 19% pick-up in revenue to $3.25 billion.
Results: EPS of $1.50 on revenue of $3.58 billion. Gross dollar volume, on a local currency basis, increased 14% to $1.4 trillion. Cross-border volumes climbed 21% on a local currency basis. Adjusted operating margin shrank to 54.2% from 55.6% a year ago, as adjusted operating expenses jumped 32% on a currency-neutral basis.
"We're off to a very strong start to the year, with record revenue and earnings this quarter, as we continue to execute against our strategy," said Mastercard CEO Ajay Banga in a statement. "We are investing in areas such as safety and security and our digital solutions to drive long-term growth, with a focus on delivering simple and secure transactions across all channels."
Stock: Mastercard shares popped 3% to 185.70 on the stock market today, topping a 183.83 buy point of a flat base. Rival Visa (V), which reported last week, was off 0.9% but still in buy range. American Express (AXP), which beat views last month, was off 0.9%.
Thomas McCrohan, an analyst for Mizuho, said in a research note last month that the four biggest banks in the U.S. have logged solid credit growth, a positive sign for the credit card companies.
Last week, Visa also raised its full-year outlook, now seeing annual net revenue growth in the low double-digits on a nominal basis, up from a prior view of high single-digit growth.
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The post Mastercard Stock Breaks Out To Buy Zone After Q1 Earnings Beat appeared first on Investor's Business Daily.
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