NEW YORK (TheStreet) -- MasterCard (MA) - Get Report shares are rising 1.13% to $101.22 on Thursday morning after the financial services corporation released its third quarter earnings that beat analysts' profit forecasts while revenue fell short.
For the period ended September 30, the company earned 91 cents a share, topping analysts' projections of 87 cents a share.
However, revenue came in at $2.53 billion, under analysts' estimates of $2.54 billion.
In the same period the year before, the company earned 87 cents a share on revenue of $2.5 billion.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on MasterCard saying: "Today is a demonstration of how hard it is to go against the entrenched credit card companies. Mastercard reported an amazing number, so did Visa (V) last week. These two companies are masterful and I like the shares of both."
Sales grew year-over-year, helped by an increase in cross-border volumes, gross dollar volume and processed transactions, the company said.
However, a rise in rebates and incentives negatively impacted revenue growth.
"As the world becomes more digitally driven, our innovations and investments in things such as MasterPass, EMV and biometrics are helping to redefine the way people shop and pay with convenience and security," CEO Ajay Banga stated.
Based in Purchase, NY, MasterCard is a technology company that provides transaction processing and other payment-related products and services in the U.S. and internationally.
Separately, TheStreet Ratings team rates MASTERCARD INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate MASTERCARD INC (MA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MA