Mastercard’s fourth-quarter results exceed expectations, but switched volume is slowing
- Mastercard’s fourth-quarter net revenue was $6.5 billion
- Adjusted earnings per share were $3.18, beating Wall Street’s expectations
- Net income was $2.8 billion, higher than the previous year
- Net revenue of $6.5 billion beat analysts’ expectations
- Switched volume is slowing, down to 11% in the fourth quarter
- Mastercard expects net revenue to grow at the low-end of low-double-digits for the first fiscal quarter
Mastercard has announced its fourth-quarter results, reporting net revenue of $6.5 billion, which beat analysts’ expectations. Adjusted earnings per share were $3.18, surpassing Wall Street’s forecast of $3.08. Net income also saw an increase, reaching $2.8 billion compared to $2.5 billion the previous year. However, the earnings report revealed that switched volume, referring to the total number and value of payment transactions processed through the Mastercard platform, is slowing down. In the fourth quarter, switched volume was 11%, down from 14% in the previous quarter. Looking ahead, Mastercard expects net revenue to grow at the low-end of low-double-digits for the first fiscal quarter. Despite the slowdown in switched volume, Mastercard’s strong earnings performance demonstrates resilience in the face of a spending slowdown.
Public Companies: Mastercard (MA), Visa (V), American Express (AXP)
Private Companies:
Key People: Michael Miebach (CEO)
Factuality Level: 8
Justification: The article provides specific financial data and quotes from the CEO, which can be verified. However, it lacks in-depth analysis and context, and does not provide any opposing viewpoints or potential risks to Mastercard’s performance.
Noise Level: 3
Justification: The article provides a brief summary of Mastercard’s fourth-quarter earnings report, including information on revenue, earnings per share, and net income. It also mentions the CEO’s statement and provides some context with comparisons to analysts’ expectations and previous year’s figures. However, the article lacks in-depth analysis, actionable insights, and supporting evidence. It mainly focuses on stock performance and comparisons to other companies, rather than exploring the consequences of Mastercard’s financial results or providing a thoughtful analysis of long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: Mastercard
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Mastercard’s fourth-quarter net revenue and stock performance. There is no mention of an extreme event.
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