Mastercard March quarter results: Net sales up 10% to $6.35 billion
Shares of Mastercard fell 0.6% as the company’s cross-border spending volumes declined in the first four weeks of April, but the company said this was related to the timing of Easter. (Bloomberg)
Mastercard on Wednesday reported first-quarter profit that beat Wall Street expectations, thanks to higher card spending by consumers despite rising borrowing costs and persistent inflation.
Wage growth and a tight labor market have created job security for card users, allowing them to spend without restrictions even as the Federal Reserve keeps monetary policy tight.
The payment processor earned $3.31 per share on an adjusted basis, beating estimates of $3.24 per share, according to LSEG data.
“These appear to be solid, but unspectacular, results,” HSBC analyst Saul Martinez wrote in a note.
Travel trends in Asia-Pacific, where pandemic restrictions were lifted later than the rest of the world, continued to be a drag due to last year’s sharper comparisons.
Shares of Mastercard fell 0.6% as the company’s cross-border spending volumes declined in the first four weeks of April, but the company said this was related to the timing of Easter.
The festival took place in the first quarter this year compared to April in 2023, making for tougher comparisons a year ago.
Net sales rose 10% to $6.35 billion in the first quarter.
NO IMPACT OF THE SCHEME
Mastercard CEO Michael Miebach said the company does not expect a “dramatic” impact from the estimated $30 billion settlement it, along with rival Visa, signed in March to cap credit and debit card fees for merchants.
The settlement, one of the largest in U.S. history, could quiet critics who have accused the companies of having a duopoly and end nearly two decades of litigation.
However, last week retailers including Target and Walmart urged a judge to reject the agreement, saying it does not go far enough.
First print: May 01, 2024 | 10:23 PM IST