Zacks: Analysts Expect Mastercard Incorporated (MA) to Post $1.12 EPS
Wall Street brokerages predict that Mastercard Incorporated (NYSE:MA) will post $1.12 earnings per share (EPS) for the current fiscal quarter, according to Zacks Investment Research. Ten analysts have provided estimates for Mastercard’s earnings, with the lowest EPS estimate coming in at $1.05 and the highest estimate coming in at $1.17. Mastercard reported earnings of $0.86 per share in the same quarter last year, which would indicate a positive year over year growth rate of 30.2%. The company is expected to announce its next earnings results on Tuesday, January 30th.
According to Zacks, analysts expect that Mastercard will report full year earnings of $4.54 per share for the current financial year, with EPS estimates ranging from $4.37 to $4.62. For the next year, analysts expect that the company will report earnings of $5.33 per share, with EPS estimates ranging from $5.07 to $5.48. Zacks’ earnings per share averages are a mean average based on a survey of sell-side analysts that that provide coverage for Mastercard.
Mastercard (NYSE:MA) last issued its quarterly earnings data on Tuesday, October 31st. The credit services provider reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.11. Mastercard had a net margin of 38.70% and a return on equity of 78.38%. The business had revenue of $3.40 billion for the quarter, compared to analysts’ expectations of $3.28 billion. During the same quarter last year, the company earned $1.08 EPS. The business’s revenue was up 18.1% on a year-over-year basis.
A number of research analysts have recently issued reports on MA shares. Wedbush reiterated a “buy” rating and set a $140.00 target price (up previously from $129.00) on shares of Mastercard in a research report on Wednesday, September 6th. Susquehanna Bancshares reiterated a “positive” rating and set a $158.00 target price (up previously from $149.00) on shares of Mastercard in a research report on Friday, September 8th. Barclays increased their target price on Mastercard from $142.00 to $148.00 and gave the company an “overweight” rating in a research report on Friday, September 8th. Citigroup increased their target price on Mastercard from $157.00 to $167.00 and gave the company a “buy” rating in a research report on Wednesday, October 18th. Finally, Instinet reiterated a “buy” rating and set a $163.00 target price (up previously from $153.00) on shares of Mastercard in a research report on Saturday, September 9th. Two investment analysts have rated the stock with a hold rating, twenty-eight have assigned a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $159.69.
Mastercard (NYSE MA) opened at $151.93 on Friday. Mastercard has a 52-week low of $102.98 and a 52-week high of $154.65. The stock has a market capitalization of $160,840.00, a P/E ratio of 35.38, a PEG ratio of 2.03 and a beta of 1.21. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.66 and a current ratio of 1.66.
Mastercard announced that its Board of Directors has initiated a share repurchase program on Monday, December 4th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the credit services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.
The business also recently announced a quarterly dividend, which will be paid on Friday, February 9th. Shareholders of record on Tuesday, January 9th will be paid a $0.25 dividend. The ex-dividend date is Monday, January 8th. This is an increase from Mastercard’s previous quarterly dividend of $0.22. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.66%. Mastercard’s dividend payout ratio (DPR) is 20.51%.
In related news, Director Richard Haythornthwaite sold 5,000 shares of the firm’s stock in a transaction dated Monday, October 2nd. The stock was sold at an average price of $142.51, for a total transaction of $712,550.00. Following the completion of the sale, the director now directly owns 45,278 shares of the company’s stock, valued at approximately $6,452,567.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Craig Vosburg sold 14,200 shares of the firm’s stock in a transaction dated Thursday, September 21st. The stock was sold at an average price of $141.86, for a total value of $2,014,412.00. Following the sale, the insider now directly owns 40,646 shares of the company’s stock, valued at $5,766,041.56. The disclosure for this sale can be found here. Insiders sold a total of 25,000 shares of company stock valued at $3,582,984 over the last ninety days. Corporate insiders own 0.30% of the company’s stock.
Several large investors have recently modified their holdings of MA. Tredje AP fonden increased its position in shares of Mastercard by 2.1% during the 1st quarter. Tredje AP fonden now owns 88,165 shares of the credit services provider’s stock worth $9,916,000 after purchasing an additional 1,811 shares during the last quarter. Alley Co LLC grew its position in Mastercard by 5.1% in the 1st quarter. Alley Co LLC now owns 31,430 shares of the credit services provider’s stock valued at $3,535,000 after acquiring an additional 1,529 shares in the last quarter. Sphera Funds Management LTD. grew its position in Mastercard by 6.5% in the 1st quarter. Sphera Funds Management LTD. now owns 11,525 shares of the credit services provider’s stock valued at $1,296,000 after acquiring an additional 700 shares in the last quarter. Comerica Securities Inc. grew its position in Mastercard by 4.5% in the 1st quarter. Comerica Securities Inc. now owns 10,313 shares of the credit services provider’s stock valued at $1,160,000 after acquiring an additional 447 shares in the last quarter. Finally, InterOcean Capital LLC grew its position in Mastercard by 37.4% in the 1st quarter. InterOcean Capital LLC now owns 106,443 shares of the credit services provider’s stock valued at $11,972,000 after acquiring an additional 28,948 shares in the last quarter. 75.81% of the stock is owned by hedge funds and other institutional investors.
Mastercard Company Profile
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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