MasterCard Beats Analyst Estimates For Q4 2012

MasterCard released its Q4 earnings report yesterday, beating analyst revenue estimates and reaching an all-time high on the stock market in subsequent trading.

MasterCard’s revenue increased to $1.9 billion for the quarter, rising $4.86 a share and beating average Thomson Reuters estimates of $1.89 billion and $4.81 a share. The network’s profits jumped to $605 million from just $19 million a year ago, and overall purchase volume for MasterCard cards rose 13 percent from 2011: 1 percent higher than they rose in Q3 2012.

“We are pleased with our fourth-quarter results, which saw double-digit growth in net revenue, cross- border volume and processed transactions,” said Ajay Banga, MasterCard president and CEO. “We are gaining traction in our U.S. credit business with some recent wins, continuing to experience momentum in our mobile initiatives around the world, and securing important business in emerging markets like Africa and Brazil.”

Banga emphasized MasterCard’s global approach several times during the earnings call, citing purchase volumes in Asia-Pacific, the Middle East and Africa that grew 19.5 percent and stating, “I’m trying to put my bets in multiple places.” MasterCard recently signed a deal with Equity Bank of Kenya to issue five million debit and prepaid cards over the next year-and-a-half, which Banga characterized as “one of the largest deals of that size in the African continent.”

While MasterCard stocks rose to threaten its all-time high of $535.35 immediately after the results, they finished the day at $518.40 after the company warned that revenue growth could slow in the first half of 2013 thanks to uncertain economic conditions.

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