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Mastercard (MA) Q1 Earnings and Revenues Beat Estimates

Zacks Equity Research

Have you been eager to see how Mastercard Incorporated MA, performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this NewYork-based financial services company.

An Earnings Beat

Mastercard reported adjusted earnings per share of $1.78 per share, beating the Zacks Consensus Estimate of $1.66. Earnings improved 18.7% year over year. Improved revenues drove the earnings upside.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Mastercard did not see any substantial movement prior to the earnings release.

Mastercard has a solid earnings surprise history. The company surpassed the Zacks Consensus Estimate by an average of 8.7% in the trailing four quarters.

Mastercard Incorporated Price and EPS Surprise

Mastercard Incorporated Price and EPS Surprise | Mastercard Incorporated Quote

Revenues Beat

Mastercard’s revenues of $3.89 billion, surpassed the Zacks Consensus Estimate by 0.6%. The same was up 8.6% year over year.

Key Takeaways    

Total adjusted operating expenses increased 2% to $1.7 billion. Operating margin expanded 270 basis points to 56.9%.

Gross dollar volume increased 12% to $1.5 trillion while cross-border volumes were up 13% on a local currency basis.

The company’s margins gained from a lower tax rate of 15.5% in the first quarter compared with 17.3% in the year ago quarter.

As of Mar 31, 2019, the company’s customers had issued 2.5 billion Mastercard and Maestro-branded cards.

What Zacks Rank Says

Mastercard carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Mastercard earnings report!

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