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Mastercard Inc. kicked off a busy stretch for payments earnings Thursday morning, beating earnings expectations for its latest quarter amid continued strength in consumer spending.
The financial-technology giant notched fourth-quarter net income of $2.5 billion, or $2.62 a share, compared with $2.4 billion, or $2.41 a share, in the year-ago quarter. On an adjusted basis, Mastercard
MA,
earned 2.65 cents a share, up from $2.37 cents a share the year before. The FactSet consensus was $2.57 a share in adjusted earnings.
Revenue at Mastercard increased to $5.82 billion from $5.22 billion, while analysts were looking for $5.79 billion.
“While macroeconomic and geopolitical uncertainty persists, consumer spending has been remarkably resilient,” Chief Executive Michael Miebach said in a release. “We are well prepared to adjust our investment profile quickly if needed.”
The company saw gross dollar volume increase 8% in the latest quarter, while cross-border volume rose 31%, both on the basis of constant currency. Switched transactions were up 8% in the period.
For 2023, Mastercard executives expect low-teens growth in net revenue and mid-single-digit growth in operating expenses, both on the basis of Generally Accepted Accounting Principles (GAAP). Mastercard’s management is also calling for adjusted operating expense growth at the “high-end of high-single digits” when excluding currency and acquisition impacts.
Shares were off 0.6% in premarket trading Thursday.
Mastercard earnings mark the start of a busy 24-hour stretch for big payments reports. Visa Inc.
V,
will report after Thursday’s closing bell, while American Express Co.
AXP,
is due to post results Friday morning.
Shares of Mastercard have gained 10% so far in 2023, as the S&P 500
SPX,
has advanced almost 5%.
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