Mastercard tops earnings expectations as spending recovery continues

1 month ago 14
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Mastercard Inc. topped expectations with its second-quarter results Thursday amid a continued recovery in spending trends.

The company reported second-quarter net income of $2.1 billion, or $2.08 a share, up from $1.4 billion, or $1.41 a share, in the year-prior quarter. After adjustments, Mastercard MA, -1.75% earned $1.95 a share, up from $1.36 a share a year earlier and ahead of the FactSet consensus, which called for $1.74 a share.

Mastercard’s revenue increased to $4.53 billion from $3.34 billion, while analysts were modeling $4.37 billion. The company pointed to a continued spending recovery both domestically and in the cross-border category.

“International travel is still in the early stages of recovery and represents additional upside potential,” Chief Executive Michael Miebach said in a release.

Shares were up 0.4% in premarket trading Thursday.

Gross dollar volume for Mastercard was up 33%, while switched transactions grew 41%. Cross-border volume rose 58%.

Mastercard’s report comes after Visa Inc. V, -1.59% posted its own results Tuesday afternoon, showing improvements in spending categories like travel and entertainment but more room for recovery in the cross-border category. Visa’s stock had dipped 1.6% in Wednesday’s session while Mastercard’s fell 1.8%.

Shares of Mastercard have lost 1.4% over the past three months as the S&P 500 SPX, -0.02% has gained 5.2%.

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