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Mastercard Tops Revenue Estimates at $9.8 Billion as Adjusted EPS Reaches $5.31

Net income rose 18% to $4.6 billion, and the consensus estimate for full-year adjusted EPS is $19.95 on $37.28 billion in revenue.

By Zintick Team · Editor: Kratik Mehta
Published

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Key points

  • Net revenue of $9.8 billion, up 14%, versus $9.66 billion analyst consensus estimate
  • Adjusted diluted EPS of $5.31 versus $5.17 consensus; GAAP diluted EPS $5.28
  • Gross dollar volume up 7% to $3.0 trillion; cross-border volume up 11%
  • Repurchased $3.0 billion of shares and paid $763 million in dividends in the quarter

Mastercard (NYSE: MA) reported third-quarter net revenue of $9.8 billion, above the $9.66 billion analysts expected, and adjusted diluted EPS of $5.31 against the $5.17 consensus estimate, in an 8-K filed Thursday, Oct. 29.

Net revenue rose 14% from a year earlier, both as reported and on a currency-neutral basis. GAAP diluted EPS was $5.28, up 22%, and net income reached $4.6 billion, up 18%. Adjusted net income was $4.7 billion.

The company attributed the growth to its payment network and value-added services. Payment network net revenue rose 11%, and value-added services and solutions net revenue rose 19%.

Volumes and costs

Gross dollar volume grew 7% on a local currency basis to $3.0 trillion. Cross-border volume rose 11%, and switched transactions grew 9%.

Total operating expenses increased 11%, primarily due to higher general and administrative expenses. Adjusted operating expenses rose 12%. GAAP operating margin was 59.8%, and adjusted operating margin was 60.5%.

Capital returns

During the quarter, Mastercard repurchased 5.3 million shares at a cost of $3.0 billion and paid $763 million in dividends. Through Oct. 26, it had repurchased 1.1 million more shares for $0.6 billion, leaving $4.9 billion remaining under approved repurchase programs.

For the fourth quarter, analysts' consensus estimate is adjusted EPS of $5.18 on revenue of $9.97 billion. The company did not provide quarterly guidance in the release.

The stock closed at $610.31 on Wednesday, Oct. 28, the last session before the filing.

Sources

Written with AI from the company's results filing with the SEC, analysts' estimates where we had them, and our market data, and checked against those sources before publishing. Our editorial standards.

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Filings, figures and price history are on the Mastercard page.