NEW YORK (TheStreet) -- Mastercard (MA), unable to exceed sky-high expectations for its fourth-quarter results Friday, has received a downgrade from FBR Capital Markets. The investment firm cut Mastercard to "market perform" from "outperform" on the view it is exposed to potentially slowing emerging markets.
The world's second largest payments network saw quarterly revenue jump 11.6% year-on-year to $2.12 billion, while net earnings were 16% higher to 57 cents a share. However, analysts surveyed by Thomson Reuters had forecast earnings of 60 cents a share, while revenue fell short of consensus by $15 million.
While the Purchase, NY-based business saw increased spending among cardholders, it was offset by higher rebates to banks and merchants for new and renewal contracts.
In pre-market trading, the stock had climbed 0.57% to $76.11.
TheStreet Ratings team rates MASTERCARD INC as a Buy with a ratings score of A+. The 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, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
- You can view the full analysis from the report here: MA Ratings Report