Mastercard Earnings Surpass Expectations Amid Continued Consumer Spending.

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Amara

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Jul 18, 2024
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Mastercard Inc. reported a strong third-quarter performance, with earnings surpassing analyst expectations. The company recorded an adjusted earnings per share (EPS) of $3.89, beating forecasts of $3.73, and a global purchase volume increase of 11% year-over-year, reaching $2.058 trillion—above the anticipated $2.054 trillion.

CEO Michael Miebach attributed the results to robust consumer spending and strong demand for Mastercard's services. Cross-border transactions, particularly, saw a significant 17% increase on a local-currency basis, showcasing resilient spending trends as inflation declines and interest rates ease.

While Mastercard's share price remained relatively unchanged, it has gained 20% in 2024. Looking forward, the company projects a low-teen percentage revenue growth for the next quarter and has outlined a strategic reorganization, which included a 3% staff reduction and a $190 million pretax charge in August. Additionally, Mastercard reported a $176 million provision related to ongoing credit-card swipe fee litigation.

CFO Sachin Mehra, recently diagnosed with non-Hodgkin lymphoma, reassured stakeholders of his health and role in the earnings call.