Mastercard Posts Better Than Expected Q2 Earnings As Consumer, Travel Spending Rebounds

Mastercard Posts Better Than Expected Q2 Earnings As Consumer, Travel Spending Rebounds
  • Mastercard Inc MA posted Q2 adjusted EPS of $2.56, higher than $1.95 a year ago and the consensus of $2.35.
  • Sales reached $5.5 billion, up from $4.5 billion a year ago and the Wall Street consensus of $5.26 billion. Revenues were up 27% on a currency-neutral basis.
  • The company posted better-than-expected earnings as consumer and travel spending continued to power higher despite ongoing concerns over the domestic economy's health.
  • The adjusted operating income margin improved to 57.9% from 53.2%.
  • The gross dollar volume increased by 14%, and purchase volume up 18% on a local currency basis.
  • "We had strong revenue and earnings growth again this quarter, as overall consumer spending remained robust and cross-border volumes grew 58% versus a year ago," said CEO Michael Miebach. "Increasing inflationary pressures have yet to impact overall consumer spending significantly, but we will continue to monitor this closely." 
  • "We have a well-diversified business model and the demonstrated ability to deliver strong operating margins through up and down cycles," he added.  
  • During the conference call, CEO Miebach said, "spending trends in Europe positive, but natural gas supply and high-interest rates remain headwinds. He also added that Asia had lagged in spending recovery.
  • Price Action: MA shares are up 0.89% at $346.32 during the market session on the last check Thursday.
  • Photo Via Wikimedia Commons

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