MasterCard 2Q profit rises on volume growth
PURCHASE, N.Y. (AP) — MasterCard’s second-quarter net income climbed 9.8 percent as it benefited from volume growth and handled more transactions in the period.
The company’s results topped analysts’ estimates. Shares rose in premarket trading on Thursday.
MasterCard Inc. is the world’s second-largest processor of debit and credit card payments. Like its bigger rival, Visa Inc., it benefits from heightened consumer spending.
The company, which is based in Purchase, New York, earned $931 million, or 80 cents per share, for the three months ended June 30. That’s up from $848 million, or 70 cents per share, a year earlier.
The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share.
Revenue rose 13 percent to $2.38 billion from $2.1 billion, beating Wall Street’s forecast of $2.3 billion. The revenue performance were somewhat offset by an increase in rebates and incentives.
Worldwide purchase volume climbed 13 percent to $821 billion, while processed transactions increased 12 percent to 10.6 billion.
Mastercard’s stock gained $1.34 to $77.25 before the market opened Thursday.