MasterCard Inc. on Wednesday reported second-quarter net income of $921-million.
Advertisement
However, revenue fell shy of financial analysts’ forecasts. Let’s take a closer look at MasterCard and whether its future is truly cloudier now than it was in the past.
Its revenue gained 0.9 percent to $2.39 billion. Massachusetts has a median Wall Street price target of $105.00 with a high target of $120.00. That worked out to $0.85 per share in adjusted earnings, up 6% from last year’s second quarter. Now there are 24 analysts that rate Massachusetts a “Buy”, 7 rate it a “Hold”.
MasterCard’s cross-border volumes – the value of transactions made by card holders outside the card-issuer’s country – jumped by 17 percent.
Once again, MasterCard showed how adept it is at reaping financial rewards internationally.
In the latest quarter, purchase volume grew 12%, on a constant-currency basis, to $841 billion.
The Purchase, N.Y.-based company has warned that its results for the year would face pressure from the strong U.S. dollar and weakness in currencies like the euro and the Brazilian real.
The company processed $1.14 trillion worth of transactions on its network, on a local currency basis, up 13 percent from a year earlier.
MasterCard’s strategic plan continues to move forward in the eyes of executives.
The company’s net income fell to $921 million in the quarter ended June 30 from $931 million, a year earlier, due to a $44 million after-tax charge related to a United Kingdom merchant litigation settlement.
Advertisement
MasterCard investors weren’t happy with the company’s results, with the stock falling almost 3% in the first half-hour of pre-market trading following the announcement.
