Global payments technology company Mastercard (NYSE:MA) will be announcing earnings results this Thursday before market hours. Here’s what to expect.
Mastercard beat analysts’ revenue expectations last quarter, reporting revenues of $8.40 billion, up 15.8% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Mastercard a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Mastercard’s revenue to grow 11.6% year on year, slowing from the 16.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Mastercard has a history of exceeding Wall Street’s expectations.
Looking at Mastercard’s peers in the credit card segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bread Financial delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 3.5%, and Capital One reported revenues up 25.8%, in line with consensus estimates. Bread Financial traded up 2.4% following the results while Capital One was down 2.4%.
Read our full analysis of Bread Financial’s results here and Capital One’s results here.
There has been positive sentiment among investors in the credit card segment, with share prices up 8.9% on average over the last month. Mastercard is up 10.2% during the same time and is heading into earnings with an average analyst price target of $644.05 (compared to the current share price of $561.50).
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