Earnings Preview: MasterCard's EPS, Revenue Expected to Rise

MasterCard MA unveils its next round of earnings this Wednesday, November 2, 2011. Here's Benzinga's advanced look at MasterCard's third quarter earnings report.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $4.80/share and revenues of $1.71 billion. MasterCard's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $3.94/share on revenues of $1.43 billion. We'll know on Wednesday whether the company has managed the estimated 21.8% increase in EPS and 19.6% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$4.21	$4.10	$3.05	$3.54
EPS Actual	$4.76	$4.29	$3.16	$3.94

Stock Performance:

As of October 27, 2011, MasterCard's current share price was $349.15. Shares are up 56.1% year to date. For a full 12 months, the return has risen by 55.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Want to check out the performance of MasterCard closest competitors? Take a look at some of the company's peers in the information technology sector.

• American Express Company AXP: Moderate Buy with a $1.03 recent quarter EPS
• Discover Financial Services DFS: Moderate Buy with a $1.18 recent quarter EPS
• Euronet Worldwide EEFT: Moderate Buy with a $0.11 recent quarter EPS
• Fidelity National Information Services FIS: Moderate Buy with a $0.55 recent quarter EPS

MasterCard is in the financial transaction services industry, which has experienced price/earnings growth of 1.1%.

Finally, a description of the company's main areas of operation: Mastercard is a multinational company whose principal business is to process payments and to provide related services to financial institutions and other customers. Its main services are in support of the credit, debit, prepaid, and related payment programs.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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