Mastercard stock rises after second quarter revenue jumps 36 per cent
|Toronto Star 29 Jul 2021 at 13:50|
Mastercard (MA) shares rose Thursday after the credit card company reported stronger-than-expected second-quarter earnings amid booming consumer spending.
Revenue soared 36 per cent in the quarter to $4.5 billion (U.S.) from $3.3 billion last year. Analysts were expecting revenue of $4.37 billion.
Net income was $2.1 billion, or $2.08 a share, rising from $1.4 billion, or $1.41 a share, a year ago. Analysts anticipated $1.74 a share.
The stock was at $390 in premarket trading, up 2 per cent. It has climbed 18 per cent over the past six months.
“We delivered solid revenue and earnings growth this quarter, fuelled by the execution of our strategy and the continued recovery in domestic and cross-border spending,” said Michael Miebach, Mastercard’s chief executive.
“International travel is still in the early stages of recovery and represents additional upside potential. We continue to focus on diversifying our business and investing for sustained long-term growth.”
Last week, Mastercard announced in a press release that it will enhance its card program to make it easier for partners to create crypto cards for their clients.
Two weeks ago, Mastercard announced a partnership with mobile carrier Verizon (VZ) on global-payments technology. Terms weren’t disclosed.
Mastercard will combine its own network with Verizon’s 5G connectivity to drive solutions for the global-payments and commerce ecosystem. The two companies plan to innovate in contactless shopping and autonomous checkout technology.
Also two weeks ago, The Reserve Bank of India indefinitely barred Mastercard from issuing new credit or debit cards to domestic customers.