Mastercard triples profit in fourth quarter of 2018
Cashless transaction giant Mastercard reported earnings for the fourth quarter of 2018 at the end of last week. The company offered investors an incredible set of results that overshot Wall Street’s expectations and demonstrated phenomenal growth from the previous year. In delivering better-than-expected performance, Mastercard joins competitor Visa and online payments giant PayPal in painting a positive picture of the consumer payments sector over the last three months.
Mastercard’s share price is on a roll so far this year, appreciating by 15% in January alone!
Source: Yahoo Finance
Mastercard beat the Street on earnings per share, delivering $1.55 for the fourth quarter. Analysts had expected earnings of $1.53, and in its comparable quarter last year, Mastercard reported earnings of $1.14. The company did equally well in regards to revenue, where it matched analysts’ expectations of $3.81 billion, and made significant advances from the fourth quarter of 2017, when it reported revenues of $3.31 billion. Most impressive of all the metrics reported, however, was net income. For the three-month period just gone, Mastercard reported net income of $899 million. That’s more-than three times as much as it reported in the fourth quarter of 2017 ($227 million)!
The company’s CEO, Ajay Banga, made the following comment over the results: “We had a very strong end to the year, bringing 2018 to a record close, driven by broad-based growth across each of our regions. These results reflect strong execution in growing our core business and driving new capabilities to improve the customer experience and enhance security across all transaction types. When you combine this with the strategic investments we’ve made for the long term, we are very well positioned for continued growth.”
Dominion holds Mastercard in its Global Trends Ecommerce Fund.
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