Payments processor Mastercard reported better-than-expected fourth-quarter earnings Wednesday morning. MA stock pared gains after hitting a new record high intraday.
Earnings
Mastercard reported a 20% increase in adjusted earnings to $3.18 per share while revenue grew 13% for a second straight quarter, to $6.55 billion.
FactSet analysts expected Mastercard earnings of $3.08 per share on $6.48 billion in revenue.
Gross dollar volume grew 10% during the quarter to $2.35 trillion, though that was a fraction below some estimates.
Cross-border volumes increased 18%. Switched transactions, which include authorization, clearing and settlement transactions, increased 12% from last year.
Meanwhile, Q4 operating expenses increased about 21% to $3.2 billion.
As of Dec. 31, the company's customers issued 3.3 billion Mastercard and Maestro-branded cards.
JPMorgan last week lifted its price target on Mastercard to $504 from $484 based on positive cross-border volume data and indications of stable consumer health. However, Q4 spending data shows a slight deceleration in domestic volume growth, JPMorgan wrote in the Jan. 23 research note. The firm maintained an overweight rating on Mastercard stock.
Dow Jones credit card companies Visa and American Express initially diverged after their respective results last week. American Express spiked after reporting a 27% earnings increase with 2024 guidance ahead of FactSet forecasts. Visa initially slid on its earnings beat, but has roared back to record highs.
Mastercard Stock
MA stock pared gains to 0.9% Wednesday after hitting a new all-time high of 462 during trade.
Shares rebounded from near the 21-day moving average on Friday.
MA stock is extended from a buy zone for a flat base following a mid-December breakout.
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