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Shares of Mastercard Inc. were up 1.6% in pre-market trading on Thursday after the payments giant beat expectations with its latest results, even as revenues and profits declined due to the effects of the pandemic on global spending growth.
The company reported net income of $ 1.79 billion, or $ 1.78 per share, compared to $ 2.1 billion, or $ 2.07 per share, in the prior year period. On an adjusted basis, Mastercard MA,
gained $ 1.64 per share, up from $ 1.96 per share, but ahead of the FactSet consensus, which called for $ 1.52 per share.
Mastercard’s revenue for the fourth quarter fell to $ 4.12 billion from $ 4.41 billion, while analysts sought $ 4.0 billion. The decline “reflects the impacts of COVID-19” as well as a 1 percentage point impact from acquisitions, the company said in its earnings release.
The company saw its gross dollar volume rise 1% in the quarter, while cross-border volume declined 29%, both in local currency. Cross-border volume is linked to international travel, which is on the decline due to the pandemic.
Chief Executive Officer Michael Miebach said the company is “encouraged by the availability of effective vaccines” and is focused on innovations that will enrich the digital experience, enhance safety and trust, and enable choice through our multi-platform. rails, which positions us all. good for the future. “
Mastercard shares have fallen 11.6% so far this year as the S&P 500 SPX,
lost 0.1%.
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