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Mastercard Inc. (NYSE: MA) published its earnings report for the fiscal fourth quarter on Thursday that topped analysts’ estimates for profit and revenue after missing estimates in the prior quarter (Q3).
Mastercard shares jumped more than 3.5% in premarket trading on Thursday. The U.S. firm now has a per-share price of £238.6. In the last week of March 2020, the stock was trading at a significantly lower £148.90 per share. The price action should come in handy if you are interested in investing in the stock market.
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Mastercard’s Q4 financial results versus analysts’ estimates
Mastercard said that its net income in the fourth quarter came in at £1.31 billion that translates to £1.30 per share. The payment giant’s net income, however, was lower than £1.54 billion in the same quarter last year or £1.52 per share.
On an adjusted basis, Mastercard earned £1.20 per share versus the year-ago figure of £1.44 per share. The financial services company generated £3.02 billion of revenue in Q4, down from £3.23 billion last year.
According to FactSet, experts had forecast the company to record £2.93 billion of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at £1.11. Earlier this week, peer American Express also reported its financial results for the fiscal fourth quarter.
Gross-dollar volume, as per Mastercard, jumped 1% in the fourth quarter versus a 29% decline in cross-border volume. Cross-border volume is attributed to international travel that remained under pressure in recent months due to the ongoing COVID-19 crisis that has so far infected more than 101 million people worldwide and caused 2.1 million deaths.
CEO Michael Miebach’s remarks on Thursday
CEO Michael Miebach commented on the financial results on Thursday and said:
“During the quarter, we expanded key partnerships around the globe, and our acquisition of Finicity added to our Open Banking portfolio. We are encouraged by the availability of effective vaccines, and we remain focused on the innovations that will enrich the digital experience, strengthen security and trust, and enable choice through our multi-rail platform, all of which position us well for the future.”
Mastercard performed fairly upbeat in the stock market last year with an annual gain of a little under 20%. At the time of writing, the American multinational financial services corporation has a market cap of £230.36 billion and a price to earnings ratio of 47.35.
