Global payments technology company Mastercard (NYSE: MA) will be reporting results this Thursday before market hours. Here’s what investors should know.
Mastercard beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $8.60 billion, up 16.7% year on year. It was a mixed quarter for the company, with but .
Is Mastercard a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mastercard’s revenue to grow 17.1% year on year to $8.77 billion, improving from the 14.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mastercard has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.
Looking at Mastercard’s peers in the consumer finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Synchrony Financial posted flat year-on-year revenue, missing analysts’ expectations by 1.5%, and Capital One reported revenues up 53.3%, topping estimates by 0.9%. Capital One traded down 7.5% following the results.
Read our full analysis of Synchrony Financial’s results here and Capital One’s results here.
Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. Mastercard is down 9.9% during the same time and is heading into earnings with an average analyst price target of $662.81 (compared to the current share price of $520.87).
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