Mastercard Incorporated (MA) to Post Q2 2018 Earnings of $1.48 Per Share, SunTrust Banks Forecasts
Mastercard Incorporated (NYSE:MA) – Analysts at SunTrust Banks lifted their Q2 2018 earnings estimates for shares of Mastercard in a research report issued on Thursday. SunTrust Banks analyst A. Jeffrey now expects that the credit services provider will post earnings of $1.48 per share for the quarter, up from their prior forecast of $1.32. SunTrust Banks has a “Buy” rating and a $180.00 price objective on the stock. SunTrust Banks also issued estimates for Mastercard’s Q3 2018 earnings at $1.68 EPS and Q4 2018 earnings at $1.49 EPS.
Several other research firms have also recently issued reports on MA. KeyCorp reiterated a “buy” rating and issued a $165.00 price target on shares of Mastercard in a report on Wednesday, October 18th. Royal Bank of Canada cut Mastercard from a “top pick” rating to an “outperform” rating and set a $130.00 price target on the stock. in a report on Thursday, January 4th. Guggenheim reiterated a “buy” rating and issued a $201.00 price target on shares of Mastercard in a report on Friday, February 2nd. BMO Capital Markets reiterated an “outperform” rating and issued a $174.00 price target (up previously from $157.00) on shares of Mastercard in a report on Wednesday, November 1st. Finally, Piper Jaffray Companies raised their price target on Mastercard from $208.00 to $212.00 and gave the company an “overweight” rating in a report on Friday, February 2nd. One analyst has rated the stock with a sell rating, two have assigned a hold rating and thirty have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $176.64.
Mastercard (NYSE:MA) last posted its quarterly earnings results on Thursday, February 1st. The credit services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.02. The business had revenue of $3.31 billion for the quarter, compared to analysts’ expectations of $3.25 billion. Mastercard had a return on equity of 83.57% and a net margin of 31.33%. The firm’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.86 earnings per share.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Mastercard by 2.3% during the second quarter. Vanguard Group Inc. now owns 65,297,307 shares of the credit services provider’s stock worth $7,930,357,000 after purchasing an additional 1,490,267 shares during the period. Janus Henderson Group PLC raised its position in shares of Mastercard by 784.3% during the second quarter. Janus Henderson Group PLC now owns 16,870,229 shares of the credit services provider’s stock worth $2,048,899,000 after purchasing an additional 14,962,583 shares during the period. Jennison Associates LLC raised its position in shares of Mastercard by 0.5% during the fourth quarter. Jennison Associates LLC now owns 15,246,959 shares of the credit services provider’s stock worth $2,307,780,000 after purchasing an additional 82,024 shares during the period. Capital Research Global Investors raised its position in shares of Mastercard by 15.8% during the second quarter. Capital Research Global Investors now owns 12,685,589 shares of the credit services provider’s stock worth $1,540,665,000 after purchasing an additional 1,729,179 shares during the period. Finally, Capital World Investors raised its position in Mastercard by 2.3% in the 2nd quarter. Capital World Investors now owns 12,675,652 shares of the credit services provider’s stock valued at $1,539,458,000 after buying an additional 289,488 shares during the last quarter. 75.79% of the stock is currently owned by institutional investors.
In other news, insider Edward Grunde Mclaughlin sold 17,167 shares of the firm’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $151.81, for a total transaction of $2,606,122.27. Following the sale, the insider now owns 47,901 shares of the company’s stock, valued at $7,271,850.81. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 0.30% of the company’s stock.
Mastercard announced that its Board of Directors has initiated a share buyback plan on Monday, December 4th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the credit services provider to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its shares are undervalued.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 9th. Stockholders of record on Monday, April 9th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.59%. Mastercard’s dividend payout ratio is currently 27.40%.
MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus.
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