MasterCard’s profit grows 15 percent and exceeds estimates - 2Nov 2010
MasterCard’s profit, the second largest worldwide network of card processing, rose 15% in the third quarter, far above expectations, with consumers increasing their spending by the world.
The company posted earnings of $ 518 million (about $ 882 million), or $ 3.94 per share last quarter, compared with $ 452 million (U.S. $ 470 million), or $ 3.45 per share, a year earlier. Analysts on average expected earnings per share of $ 3.54, according to Thomson Reuters.
“The numbers were far beyond expectations” and illustrated “a fundamental shift in their business,” said Jim Tierney, Chief Investment Officer of WP Stewart, a shareholder of MasterCard.
The company, which processes card transactions, generates revenue every time someone makes a purchase with a credit card or debit card.
MasterCard’s profit, the second largest worldwide network of card processing, rose 15% in the third quarter, far above expectations, with consumers increasing their spending by the world.
The company posted earnings of $ 518 million (about $ 882 million), or $ 3.94 per share last quarter, compared with $ 452 million (U.S. $ 470 million), or $ 3.45 per share, a year earlier. Analysts on average expected earnings per share of $ 3.54, according to Thomson Reuters.
“The numbers were far beyond expectations” and illustrated “a fundamental shift in their business,” said Jim Tierney, Chief Investment Officer of WP Stewart, a shareholder of MasterCard.
The company, which processes card transactions, generates revenue every time someone makes a purchase with a credit card or debit card.
The chief executive of MasterCard, Ajay Banga, who took office in July, attributed the good results in an increase in spending outside the United States.
MasterCard has relatively few growth opportunities in the United States, where the competitor dominates the market for Visa debit processing and most consumers already have some type of card.
Banga is betting that the company can grow more strongly in emerging countries like Brazil and India, where consumers still use more cash than cards.
By Arlon Delarosa (FFOG.net)