Mastercard Shares Continue Rebound Following Q2 Earnings

MasterCard Inc MA shares continued to rebound in the pre-market on Thursday following better-than-expected second quarter results. Both adjusted EPS and revenue were above estimates.

MasterCard reported net income of $983 million representing an increase of 7 or 8 percent on a currency-neutral basis, while EPS of $0.89 was up 10 or 11 percent on a currency-neutral basis. Excluding special items, it would have earned net income of $1.1 billion for the second quarter representing a growth of 10-11 percent on a currency-neutral basis. Similarly, its EPS were up by 13-14 percent on a currency-neutral basis at $0.96.

The card processor's net revenue advanced 13 percent to $2.7 billion. On a currency-neutral basis, net revenue would have grown 14 percent driven by 14 percent increase in processed transactions and 11 percent increase in gross dollar volume apart from 10 percent cross-border volume growth.

Analysts estimated MasterCard to earn EPS of $0.90 and revenue of $2.59 billion for the three-month period April – June.

President and CEO, Ajay Banga, said, "With last week's VocaLink announcement, we will expand our capabilities beyond core card-based solutions into a broader set of transactions and payments. The collective technology and experience will provide consumers, businesses and governments more choice and value in how they pay and are paid."

At time of writing, the stock advanced 1.92 percent to $95.55 in pre-market.