Earnings Alerts

Mastercard (MA) Earnings: 1Q Adjusted EPS Surpasses Expectations at $3.73, Net Revenue Soars to $7.25 Billion

  • Mastercard‘s adjusted EPS for Q1 was $3.73, exceeding the estimate of $3.58.
  • Reported EPS stood at $3.59.
  • The company’s net revenue reached $7.25 billion, surpassing the estimate of $7.13 billion.
  • Operating margin was notably high at 57.2%.
  • Cross-border volumes increased by 15%, slightly below the expected 17.4%.
  • Total purchase volume was $1.99 trillion, less than the estimated $2.04 trillion, marking a 10% increase.
  • Gross Dollar Volume reported at $2.42 trillion, shy of the $2.48 trillion estimate.
  • Operating expenses amounted to $3.10 billion, higher than the anticipated $2.96 billion.
  • Adjusted operating expenses were recorded at $3.0 billion, slightly above the estimate.
  • Analyst consensus includes 38 ‘buys’, 9 ‘holds’, and no ‘sells’.

Mastercard on Smartkarma

On Smartkarma, top independent analysts like Baptista Research are providing insightful coverage of Mastercard. Baptista Research‘s analysis titled “Mastercard: Can Its Cross-Border Revenue Growth Be Sustained? – Major Drivers” highlights Mastercard Incorporated’s robust financial performance in the fourth quarter of 2024. The earnings report showcased solid year-over-year growth in revenue and income, indicating the company’s effective strategies in expanding its Payment and Services & Solutions capabilities. A key positive takeaway was the strong revenue growth of 16% in Q4, attributed to increased transaction volumes and growing demand for value-added services.

In another report by Baptista Research titled “How Mastercard‘s Smart Moves in Digital Payments and Travel Are Paying Off Big!”, Mastercard Inc.’s fiscal third quarter 2024 results were lauded for their strong performance across operational spheres. CEO Michael Miebach emphasized significant year-over-year growth, with net revenues and adjusted net income up by 14% and 13%, respectively, on a non-GAAP currency-neutral basis. The impressive growth was driven by consistent consumer spending and a remarkable 17% year-over-year increase in cross-border volume, showcasing Mastercard‘s strategic positioning in digital payments and travel sectors.


A look at Mastercard Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

MasterCard, Inc. is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. With a strong emphasis on growth and momentum, MasterCard scores well in these key areas. Growth, resilience, and momentum scores are notably high, indicating a positive trajectory for the company’s future performance. While value and dividend scores are moderate, the robust growth score suggests potential for above-average performance in the long run.

As a global payment solutions company, MasterCard, Inc. stands out for its wide range of services supporting financial institutions’ payment programs. With a focus on transaction processing for various payment methods, including credit and debit cards, electronic cash, ATMs, and travelers checks, MasterCard plays a significant role in the financial ecosystem. The combination of its diverse service offerings and favorable Smartkarma Smart Scores positions MasterCard for continued success in the payments industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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