Mastercard (MA) - Get Mastercard Incorporated Report shares rose Thursday as fourth-quarter profit and revenue fell from a year ago but exceeded expectations, as the payments company weathered the Covid pandemic.
Revenue slid 7% to $4.12 billion in the quarter from $4.41 billion last year, ahead of the FactSet analyst consensus of $4.0 billion. The pandemic hurt revenue, but acquisitions helped. The company’s cross-border volume plunged 29% amid the drop in global travel.
Mastercard registered net income of $1.79 billion, or $1.78 a share, in the fourth quarter, down from $2.1 billion, or $2.07 a share, a year ago. Adjusted earnings totaled $1.64 a share, down from $1.96 a share a year ago but above the analyst consensus of $1.52 a share.
Mastercard recently traded at $327.00, up 3.65%. But it has slid 2% over the past six months as the pandemic has weighed on spending, depressing Mastercard’s transaction volume.
“The momentum we bring into 2021 reflects how our employees stepped up to the challenges of last year,” said Mastercard Chief Executive Michael Miebach. “Our payments solutions, services and insights supported our customers and consumers as they navigated through the pandemic.”
Further, “during the quarter, we expanded key partnerships around the globe and our acquisition of Finicity added to our Open Banking portfolio,” he said. “We are encouraged by the availability of effective vaccines, and we remain focused on … innovations that will enrich the digital experience…”