This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

MasterCard Profits Jump 25% (Update 1)

Stocks in this article: MA

Updated with comments from KBW analyst Sanjay Sakhrani.

  • MasterCard reports first-quarter earnings per share of $5.36.
  • Analysts were expecting EPS of $5.30.
  • Net revenue rises 17% year-over-year.

NEW YORK ( TheStreet) - MasterCard (MA - Get Report) on Wednesday reported first-quarter earnings of $682 million, or $5.36 a share, ahead of the average estimate of analysts polled by Thomson Reuters for a profit of $5.30 a share.

The latest numbers were up from an adjusted profit of $514 million, or $4.03 a share, in the fourth quarter, and earnings of $562 million, or $4.29 a share, in the first quarter of 2011.

Revenue for the latest three months totaled $1.8 billion, compared to $1.7 billion the previous quarter, and $1.5 billion, a year earlier.

The company said that purchasing volume rose 17% year-over-year, on "a local currency basis," to $629 billion during the first quarter.

CEO Ajay Banga said "we had a good start to the year with solid first quarter results driven by an increase in processed transactions, the highest quarterly growth rate since our IPO, as well as positive volume growth in all regions as consumers continue to adopt electronic payments."

KBW analyst Sanjay Sakhrani rates MasterCard "Outperform," with a $484 price target, and said that although the company's first-quarter EPS came in slightly below his estimate of $5.40, it "reported a solid quarter despite coming in a little lower than our expectations. Operating trends were constructive with solid goss dollar volume growth worldwide, with particular resilience in Europe," where volume growth accelerated "sequentially on an constant currency basis."

Sakhrani estimates that MasterCard will earn $22.02 a share this year, followed by 2013 EPS of $25.93.

MasterCard's shares closed at $455.90 Tuesday, returning 22% year-to-date, following a flat total return during 2011.

The shares trade for 18 times the consensus 2013 EPS estimate of $25.91. The consensus 2012 EPS estimate is $22.01.

Interested in more on MasterCard? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs