MasterCard profit, sales top estimates; Shares rise on earnings beat

MasterCard reported first-quarter earnings and sales Tuesday that topped analysts’ expectations, sending shares of the stock higher in premarket trade.
Here’s what the company reported vs. what the Street was expecting:
• Earnings per share: $1.01 vs. estimate of 95 cents according to Thomson Reuters’ consensus survey.
• Revenue: $2.734 vs. estimate of $2.651 billion, according to Thomson Reuters.
Shares traded more than 2 percent higher in premarket trade on Tuesday.
The payment network, which reported last quarter it processes more than 65,000 transactions every minute worldwide, recently unveiled a payment card in South Africa featuring a biometric fingerprint scanner.
This is one effort by MasterCard to create a safer and more efficient way of payment authentication amid heightened concerns over identity theft and hacking.
The United States represents the company’s largest market, though MasterCard deals in 150 currencies in total and reported an increase in “cross-border volumes” of 13 percent last quarter.
A close competitor, American Express, has been revamping its premium Platinum card lately, which now offers perks like a $200 credit toward Uber rides each year, an invitation to an exclusive pop-up restaurant in the Hamptons and $200 for airline fees.
Meanwhile, MasterCard hopes to expand its own millennial- friendly MasterPass, a digital wallet service, and has said it will expedite advertising and marketing spending in the first half of 2017.
The company will likely spend more on MasterPass, security and geographic expansion in coming quarters, according to analysts.
As of Monday’s close, shares of MasterCard have climbed nearly 20 percent over the past 12 months and are up about 13 percent this year.

Source: FactSet
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