Updated with comments from KBW analyst Sanjay Sakhrani.
Revenue for the latest three months totaled $1.8 billion, compared to $1.7 billion the previous quarter, and $1.5 billion, a year earlier. The company said that purchasing volume rose 17% year-over-year, on "a local currency basis," to $629 billion during the first quarter. CEO Ajay Banga said "we had a good start to the year with solid first quarter results driven by an increase in processed transactions, the highest quarterly growth rate since our IPO, as well as positive volume growth in all regions as consumers continue to adopt electronic payments." KBW analyst Sanjay Sakhrani rates MasterCard "Outperform," with a $484 price target, and said that although the company's first-quarter EPS came in slightly below his estimate of $5.40, it "reported a solid quarter despite coming in a little lower than our expectations. Operating trends were constructive with solid
goss dollar volume growth worldwide, with particular resilience in Europe," where volume growth accelerated "sequentially on an constant currency basis." Sakhrani estimates that MasterCard will earn $22.02 a share this year, followed by 2013 EPS of $25.93. MasterCard's shares closed at $455.90 Tuesday, returning 22% year-to-date, following a flat total return during 2011.
The shares trade for 18 times the consensus 2013 EPS estimate of $25.91. The consensus 2012 EPS estimate is $22.01. Interested in more on MasterCard? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
- MasterCard reports first-quarter earnings per share of $5.36.
- Analysts were expecting EPS of $5.30.
- Net revenue rises 17% year-over-year.