Stock Monitor: Consumer Portfolio Services Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 21, 2018 / Active-Investors.com has just released a free earnings report on Mastercard Inc. (NYSE: MA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MA. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 01, 2018. The world's second-biggest payments network surpassed revenue and earnings estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Mastercard most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For Q4 2017, Mastercard's net revenue growth surged 20% on an as reported basis and 18% on a currency-neutral basis to $3.3 billion compared to $2.8 billion in Q4 2016. The Company's revenue growth was driven by an increase in switched transactions of 17% to 17.7 billion on a y-o-y basis; a 17% growth in cross-border volumes; a 13% increase in gross dollar volume (GDV), totaling $1.4 trillion; and acquisitions which contributed 3%. These increases were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes. Mastercard's revenue numbers beat analysts' estimates of $3.26 billion.
During Q4 2017, Mastercard's total operating expenses increased 28% to $1.8 billion on a y-o-y basis. Excluding special items, the Company's total adjusted operating expenses rose 15% to $1.5 billion for the reported quarter, including an 8% impact from acquisitions.
For Q4 2017, Mastercard's effective tax rate was 84.7% compared to 28.8% in Q4 2016. The higher tax rate was primarily attributed to the US Tax Cuts and Jobs Act 2017 (TCJA). Excluding special items, the Company's adjusted effective tax rate was 26.8% for the reported quarter, primarily due to a more favorable geographic mix of taxable earnings and the impact of non-recurring deductions.
Mastercard reported a net income of $227 million, or $0.21 per diluted share, for Q4 2017 compared to $933 million, or $0.86 per diluted share, in Q4 2016. The Company's reported quarter earnings included $981 million, or 0.92 per diluted share, in special items, primarily due to the TCJA.
Mastercard's adjusted net income was $1.2 billion, or $1.14 per adjusted diluted share, in Q4 2017, up 28% and 33%, respectively, compared to the year ago same period. The Company's earnings beat Wall Street's estimates of $1.12 per share.
For the twelve months ended December 31, 2017, Mastercard's net revenues advanced 16%, or 15% on a currency-neutral basis, to $12.5 billion compared to $10.8 billion in FY16. The revenue growth was attributed to a 17% jump in switched transactions totaling 65 billion; an increase in cross-border volumes of 15%; and a 10% jump in GDV to $5.2 trillion, aided by a 2% impact from acquisitions, primarily Vocalink.
For FY17, Mastercard recorded a net income of $3.9 billion, or $3.65 per diluted share, compared to $4.1 billion, or $3.69 per diluted share, in Q4 2016. The Company's adjusted net income was $4.9 billion, or $4.58 per diluted share, in FY17, up 18% and 21%, respectively, compared to the year ago.
As of December 31, 2017, Mastercard's customers had issued 2.4 billion Mastercard and Maestro-branded cards.
Return of Capital to Shareholders
During Q4 2017, Mastercard repurchased approximately 6.9 million shares at a cost of $1 billion, and paid $233 million in dividends. Quarter-to-date through January 30, 2018, the Company repurchased an additional 1.8 million shares at a cost of $287 million, leaving $5 billion under its current repurchase program authorization. For FY17, Mastercard repurchased approximately 30 million shares at a cost of $3.8 billion, and paid $942 million in dividends.
Stock Performance Snapshot
February 20, 2018 - At Tuesday's closing bell, Mastercard's stock marginally dropped 0.17%, ending the trading session at $175.35.
Volume traded for the day: 3.75 million shares.
Stock performance in the last month – up 5.11%; previous three-month period – up 16.64%; past twelve-month period – up 60.25%; and year-to-date – up 15.85%
After yesterday's close, Mastercard's market cap was at $184.62 billion.
Price to Earnings (P/E) ratio was at 39.25.
The stock has a dividend yield of 0.57%.
The stock is part of the Financial sector, categorized under the Credit Services industry.
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