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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Visa, MasterCard and the Power of Plastic

Stocks in this article: AXP DFS MA V MS

Then there's Discover. Since it was spun off in 2007 by Morgan Stanley (MS), the company has successfully diversified. Acquisition and innovation have taken the company into student, home and personal loans with much success. Over this time, Discover has remembered its origins and continued to make progress within its core processing and lending segment.

Discover's total revenue, net of interest expense, increased 2.8% year over year to $2.06 billion. The improvement came on the back of Discover card sales volume growth from its portfolio of clients. Moreover, the company reported its net interest income improved by 8.8% year over year to $1.51 billion, driven by strong loan growth and higher net interest margins.

Total loans improved by 5% year over year to $62.7 billion, helped by a 4% increase in credit card loans. Strength was felt across all line of the company's loan portfolio. Discover was able to generate a 5% increase in private student loans and a 26% jump in personal loans.

Meanwhile, MasterCard has positioned itself second in the U.S. plastic market with 26% market share in payment volume. However, during the company's third quarter it was the company's oversees segment that shone. 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 generated a 16% rise in revenue to $2.22 billion for the three months that ended Sept. 30.

Excluding the company's U.S. results, the dollar amount people spend using MasterCard-branded cards rose by nearly 19% on a local currency basis. The international results greatly outperformed the domestic market segment, which only saw spending increase by 10%.

MasterCard was able to beat analysts' expectations on both the top and bottom lines. The experts on Wall Street were expecting only $6.94 per share and on revenue of $2.14 billion. Going forward, the Street will be keeping its eye on the company's international growth. Sustained high levels of growth in the emerging and international segment could allow the company to form another foothold position.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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