Mastercard Inc. (MA - Get Report) posted better-than-expected second quarter earnings Tuesday as the U.S. economy's robust consumer backdrop boosted spending and lead to a 20% surge in credit card transactions.
Mastercard said adjusted earnings for the three months ending in June came in at $1.89 per share, up 13.8% from the same period last year and firmly ahead of the Street consensus forecast of $1.82 per share. Group net revenues, Mastercard said, rose 12% from last year to $4.1 billion, just ahead of analysts' forecasts of a $4.08 billion tally. Overall card transactions rose nearly 21% from last year to 26.8 billion, Mastercard said, paced by a 10% increase from last year's total in the United States.
Looking into the current quarter as well as the 2019 financial year, Mastercard said it sees a net revenue growth rate in the "high end of low double digits," with "low teens" growth in the three months ending in September..
"We continue to execute well against our strategy and had another strong quarter of revenue and earnings growth," said CEO Ajay Banga. "We are driving growth in our core products with key wins around the globe, and our recent acquisitions, such as Transfast, and new partnerships, like P27 in the Nordics, will help us address our customers' evolving payments needs, particularly in the areas of real-time account-to-account and cross-border payments."
Mastercard shares were marked 0.13% higher following the earnings release to change hands at $281.62 each, a move that pegs the stock's year-to-date gain to around 47.5%.