Mastercard Incorporated ($MA) Earnings (Q1 FY22)

Mastercard Incorporated ($MA) Earnings and Opinion:


Mastercard is a company in the Financial Services sector and operates in the Credit Services industry. The company provides transaction processing and payment-related products all around the world. Mastercard was founded in 1966 and is currently headquartered in Purchase, New York. The company was first traded on the stock market in 2006.

Mastercard EPS and Revenue (Q1 FY22):

  • EPS of $2.76 beating expectations of $2.16
  • Revenue of $5.17B beating expectations of $4.90B 
Mastercard Q1 Financial Highlights:
  • Adjusted net income of $2.7B
  • Revenue was up 24% (YOY)
  • Gross dollar volume was up 17% 
  • Purchase volume was up 21%
Opinion:
Mastercard popped off after reporting earnings last week. The company released a solid earnings report and had a solid beat on its expectations. The company was able to grow its revenues 24% on a year-over-year basis. They were also able to increase the gross dollar volume as well as their purchase volume. After reviewing the credit service companies earnings reports from this quarter, it seems as if this industry is seeing little effect from the economic challenges currently impeding the market. Mastercard has a solid operating margin at around 57%. The company looks to be growing at a nice rate and I look for them to continue with what they are doing in order to keep the stock price increasing. They said a lot of their transactions were based on travel. This is a sign that traveling may become a norm again, which is going to be a good thing for the economy and it will be nice for a lot of those companies that service those sectors. The company also saw higher cross-border volume, which grew at a rate of 53%. Personally, I do not have any ownership in this company right now. However, one of the services I use just recommended that this could possibly be a pretty solid company to hold. I will have to agree with that service because the company looks solid all around. If travel does kick back into full gear, it will be no doubt that this company will be able to really grow its revenues and lead to a nice upside for the company in the future. Not to mention, the company does pay a nice dividend which is a positive for shareholders as they will get an even higher return on their investment. 


*Information from Mastercard, Yahoo Finance, Google
*Estimates from Zacks

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