Analysts are expecting that the credit card and global payments company will report both earnings per share and revenue for the most recent quarter that are flat with MasterCard's year ago third quarter results.
The company has been forecast by analysts surveyed by Thomson Reuters to post earnings of 87 cents per share on revenue of $2.54 billion for the September ended period.
MasterCard's earnings came in at 87 cents per diluted share on revenue of $2.5 billion for the 2014 third quarter. Both figures increased by 19% and 13% respectively when compared to the 2013 third quarter.
Shares of MasterCard are up by 0.66% to $99.06 in mid-morning trading on Wednesday.
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.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 26.8%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MA's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the IT Services industry and the overall market, MASTERCARD INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Net operating cash flow has increased to $821.00 million or 12.62% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.94%.
- MASTERCARD INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MASTERCARD INC increased its bottom line by earning $3.09 versus $2.57 in the prior year. This year, the market expects an improvement in earnings ($3.36 versus $3.09).
- You can view the full analysis from the report here: MA