Mastercard Posts Better Than Expected Q2 Earnings As Consumer, Travel Spending Rebounds
Mastercard Inc (NYSE: MA) posted Q2 adjusted EPS of $2.56, higher than $1.95 a year ago and the consensus of $2.35.
Sales reached $5.5 billion, up from $4.5 billion a year ago and the Wall Street consensus of $5.26 billion. Revenues were up 27% on a currency-neutral basis.
The company posted better-than-expected earnings as consumer and travel spending continued to power higher despite ongoing concerns over the domestic economy's health.
The adjusted operating income margin improved to 57.9% from 53.2%.
The gross dollar volume increased by 14%, and purchase volume up 18% on a local currency basis.
"We had strong revenue and earnings growth again this quarter, as overall consumer spending remained robust and cross-border volumes grew 58% versus a year ago," said CEO Michael Miebach. "Increasing inflationary pressures have yet to impact overall consumer spending significantly, but we will continue to monitor this closely."
"We have a well-diversified business model and the demonstrated ability to deliver strong operating margins through up and down cycles," he added.
During the conference call, CEO Miebach said, "spending trends in Europe positive, but natural gas supply and high-interest rates remain headwinds. He also added that Asia had lagged in spending recovery.
Price Action: MA shares are up 0.89% at $346.32 during the market session on the last check Thursday.
Photo Via Wikimedia Commons
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.