MasterCard Beats The Street
MasterCard surprised analysts by posting a 3rd quarter profit that exceeded estimates. MasterCard is the second largest payment processing network in the world, second only to Visa.
All in all it is positive news for the economy because the numbers were increased due to more people using their plastic. And of course when people spend money it stimulates the economy.
Breaking Down the Numbers
MasterCard’s net income was $452.2 million which comes out to be $3.45 per diluted share. That compares with a loss of a year ago of $193.6 million, or $1.48. That huge dip last year can be attributed to the settlement of an antitrust lawsuit.
The antitrust lawsuit settlement stemmed from a lawsuit filed by Discover Financial Services which accused both MasterCard and Visa of blocking banks from using the cards they issue.
It looks as if consumers are starting to gravitate more towards their debit and credit cards and away from cash. The distinction must be made that MasterCard and Visa make their money by processing payments, not by making loans which are essentially exactly what bank issued credit cards are.
The rise in use of debit cards has also greatly helped their bottom line. There is indeed a trend towards electronic payments globally and MasterCard and Visa will be the beneficiaries of it.
The number of transactions that were processed during the quarter rose 7.6% to 5.8 billion, MasterCard reported. That caused an increase in revenue of approximately 2% to $1.36 billion. Most analysts saw their revenue coming in at $1.35 billion before the report.
Visa, for their part, reported an adjusted income increase of 32% to $552 million in the quarter ending September 30th.
Related Information:
- Discover Settles Anti-Trust Suit with Visa and MasterCard Discover financial services agrees to pay MasterCard and Visa to settle litigation....
- MasterCard Bucks the Trend MasterCard posts better than expected earnings in the struggling financial sector....
- Apply For A MasterCard Credit Card in 6 Easy Steps Read our helpful tips on how to apply for a MasterCard in order to give yourself the best chance to be approved....
- MasterCard Credit Cards Compare MasterCard credit cards. Check out the latest reviews including the features and benefits that MasterCard has to offer....