Mastercard (MA) - Get Report on Tuesday posted better-than-expected third-quarter earnings as more businesses and consumers used its "click to pay" option for online purchases, leading to higher credit card transactions.
Mastercard said earnings for the three months ended in September came in at $2.1 billion, or $2.07 a share, vs. $1.9 billion or $1.82 a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting earnings of $2.01 a share. Revenue rang in at $4.5 billion, up from $3.9 billion a year ago and above analysts' forecasts of $4.42 billion.
"We delivered another quarter of solid revenue and earnings growth as we execute on our strategy and invest for the long-term," Mastercard CEO Ajay Banga said. "We have recently expanded several key customer relationships, announced our Mastercard Track suite of B2B solutions and launched the faster, more secure click-to-pay online checkout experience."
During the third quarter, Mastercard said it repurchased approximately 6.4 million shares at a cost of $1.8 billion and paid $335 million in dividends. Quarter-to-date through Oct. 24, the company repurchased an additional 1.6 million shares at a cost of $449 million, leaving $800 million left under current repurchase program authorizations.
"Overall it was a solid quarter that demonstrates Mastercard's ability to execute despite a slowing global economy and the benefits it is seeing from a rapidly changing payment landscape as we move from cash to plastic and eventually account to account," said Zev Fima, research director at TheStreet's Action Alerts PLUS.
Shares of Mastercard were down 0.34%, or 93 cents a share, at $275 in afternoon trading on Tuesday.
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