Latest news with #MichaelMiebach
Yahoo
01-05-2025
- Business
- Yahoo
Mastercard Lifts Annual Outlook After Q1 Beat, Fueled By Cross-Border Surge
Mastercard Inc (NYSE: MA) reported fiscal first-quarter results on Thursday. The company reported quarterly net revenues of $7.25 billion, up 14% year-over-year and 17% Y/Y on a neutral currency basis, beating the analyst consensus estimate of $7.12 billion. Adjusted EPS rose 13% Y/Y to $3.73, exceeding the analyst consensus estimate of $3.57. Payment network net revenue rose 13% Y/Y (+16% Y/Y on a currency-neutral basis), led by growth in gross dollar volume (+9% Y/Y), cross-border volume (+15% Y/Y), and switched transactions (+9% Y/Y). Mastercard Bets On Cross-Border Payments With $300 Million Corpay Deal Value-added services and solutions net revenue rose 16% and 18% on a currency-neutral basis, driven by demand for its consumer acquisition and engagement and business and market insight services, the scaling of its security and digital and authentication solutions, and pricing. Mastercard's switched volume, reflecting the value of transactions on its network, rose by 11% year over year. Cross-border volume, which indicates travel demand by tracking spending on cards outside their country of issue, increased by 15% in the same period. The adjusted operating margin expanded 50 bps Y/Y to 59.3%. The net income climbed 12% on a currency-neutral basis to $3.3 billion, while the adjusted net income improved by 13% on a currency-neutral basis to $3.4 billion. As of March 31, 2025, the company had issued 3.5 billion Mastercard and Maestro branded cards to customers. During the quarter, Mastercard repurchased 4.7 million shares for $2.5 billion and paid $694 million in dividends. As of March 31, 2025, cash and cash equivalents stood at $9.98 billion. Mastercard CEO Michael Miebach said, "Our steady drumbeat of innovation continues. We launched Mastercard Agent Pay, our new Agentic Payments Program, and will work with companies like Microsoft and OpenAI. And we announced a strategic partnership with Corpay to deliver an enhanced suite of corporate cross-border payment solutions." He added, "While there is uncertainty in the world, we've built a diversified, resilient business model and proven strategy that enables us to effectively navigate various economic environments." On Tuesday, Visa Inc (NYSE:V) reported second-quarter EPS of $2.76, which beat the analyst consensus estimate of $2.68. Quarterly revenue came in at $9.59 billion, up 9.2% Y/Y, which beat the analyst consensus estimate of $9.55 billion. Q2 and FY25 Outlook: Mastercard expects net revenue growth in the mid-teens digits for the second quarter versus the $7.78 billion consensus estimate. The company now expects low teen-digit revenue growth for fiscal 2025 (prior low double digits) versus the $31.51 billion consensus estimate. Price Action: MA stock is down 0.68% at $544.36 at the last check on Thursday. Read Next:Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? MASTERCARD (MA): Free Stock Analysis Report This article Mastercard Lifts Annual Outlook After Q1 Beat, Fueled By Cross-Border Surge originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Mastercard Continues Growing Steadily
Mastercard continues to deliver low-teens revenue growth. Net income grew slower than revenue, but operating income was up at a higher rate. Total card issuance continues to climb as well, with revenue growing even faster on increased utilization. Here's our initial take on Mastercard's (NYSE: MA) first-quarter financial results. Metric Q1 FY24 Q1 FY25 Change vs. Expectations Revenue $6.3 billion $7.3 billion +14% Beat Earnings per share $3.22 $3.59 +11.5% Beat Gross dollar volume (change % in local currency) $2.3 trillion $2.4 trillion +9% n/a Total Mastercard-branded cards 2.97 billion 3.2 billion +8% n/a Another quarter brought another period of low-teens revenue growth for Mastercard. It's one of the largest issuers of credit, debit, and other payment cards and the operator of the networks those cards run on. Revenue was up 14% to $7.3 billion, while gross dollar volume was up 9% (on a currency-neutral basis) to $2.42 trillion. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Mastercard continues to see solid growth in total cards being used too. Active cards surpassed 3.5 billion in the quarter, up 6% over the past year, while switched transactions increased 9% to 40.1 billion. In other words, the company continues to see strong and growing demand for its cards and access to its payments network, and cardholders are using their cards more often and for larger transactions. One more look at revenue and where it's growing: Payment network revenue was up 13%, while value-added services and solutions revenue was up 16%. This part of the business is helping drive better profitability. It's also worth noting that on a currency-neutral basis, net revenue was up 17%. Further down the operating statement, you'll note that net income increased at 11% on a GAAP basis and 15% adjusted. Both are lower rates than revenue growth and not typical of what we usually see and expect from Mastercard. However, a quick look at the operating statement allays those concerns. Operating expenses increased 13%, in line with revenue growth, while operating income was up 15% and pre-tax income was up 13%. As investors have come to expect, Mastercard shares were up modestly ahead of the market open following the earnings release. Its results were slightly better than expected (as they often are), and management was optimistic in its guidance, which was not adjusted substantially in lieu of the ongoing tariff and trade negotiations that sent the U.S. economy into negative growth in the first quarter. Mastercard's business, of course, is leveraged to the global economy, and in the first quarter, the ongoing impacts of the trade dispute between the U.S. and the rest of the world had not fully begun. As we move further into periods in which tariffs could impact consumer spending patterns globally, there is some near-term reason for caution. But as CEO Michael Miebach reminded us in his comments on the quarter, Mastercard is a "diversified, resilient business" that's built to navigate these sorts of environments and thrive on the other side. Earnings press release and presentation Investor relations page Before you buy stock in Mastercard, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Mastercard wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Jason Hall has positions in Mastercard. The Motley Fool has positions in and recommends Mastercard. The Motley Fool has a disclosure policy. Mastercard Continues Growing Steadily was originally published by The Motley Fool
Yahoo
25-04-2025
- Business
- Yahoo
Mastercard CEO says consumers' fears about the economy haven't affected their spending yet: 'They still want to make that trip'
Consumer confidence levels may be dropping, but consumer spending doesn't reflect it. That's according to Mastercard CEO Michael Miebach, speaking at Semafor's World Economy Summit. "The consumer today is an empowered consumer that will still stick to what they want to do," he said. Consumer confidence has taken a hit amid economic uncertainty, but you wouldn't know it based on current consumer spending figures at one major credit card. Mastercard CEO Michael Miebach said spending hasn't noticeably changed yet in spite of growing anxieties about shifting tariffs, a possible recession, and the weakening dollar. "The consumer today is an empowered consumer that will still stick to what they want to do," Miebach said at Semafor's 2025 World Economy Summit on Wednesday. "They still want to make that trip." Miebach said that while "soft data" like headlines and consumer confidence studies would suggest a pullback in consumer spending, there is currently no evidence of that in the real-time spending information that Mastercard monitors. "The hard data is not reflecting yet where the consumer is," he said. In March, for example, Miebach noted there'd been a 1.4% increase in consumer spending, which he said was "nothing out of the ordinary." "It's the most asked question that I get and then when I say what I just said. People say there must be something more," he said. "But right now there is not." Consumer confidence registered at 92.9 in March, dropping to its lowest level since 2021, according to the Conference Board's latest survey. Wall Street is keeping a watchful eye on consumer sentiment, as a weaker outlook on spending could put a dent in corporate earnings and impact the stock market. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
24-04-2025
- Business
- Business Insider
Mastercard CEO says consumers' fears about the economy haven't affected their spending yet: 'They still want to make that trip'
Consumer confidence levels may be dropping, but consumer spending doesn't reflect it. That's according to Mastercard CEO Michael Miebach, speaking at Semafor's World Economy Summit. "The consumer today is an empowered consumer that will still stick to what they want to do," he said. Mastercard CEO Michael Miebach said spending hasn't noticeably changed yet in spite of growing anxieties about shifting tariffs, a possible recession, and the weakening dollar. "The consumer today is an empowered consumer that will still stick to what they want to do," Miebach said at Semafor's 2025 World Economy Summit on Wednesday. "They still want to make that trip." Miebach said that while "soft data" like headlines and consumer confidence studies would suggest a pullback in consumer spending, there is currently no evidence of that in the real-time spending information that Mastercard monitors. "The hard data is not reflecting yet where the consumer is," he said. In March, for example, he pointed out a 1.4% increase in consumer spending, which he said was "nothing out of the ordinary." "It's the most asked question that I get and then when I say what I just said. People say there must be something more," Miebach said about consumer spending. "But right now there is not."
Business Insider
24-04-2025
- Business
- Business Insider
Mastercard CEO says consumers' fears about the economy haven't affected their spending yet: 'They still want to make that trip'
Consumer confidence levels may be dropping, but consumer spending doesn't reflect it. That's according to Mastercard CEO Michael Miebach, speaking at Semafor's World Economy Summit. "The consumer today is an empowered consumer that will still stick to what they want to do," he said. Consumer confidence has taken a hit amid economic uncertainty, but you wouldn't know it based on current consumer spending figures at one major credit card. Mastercard CEO Michael Miebach said spending hasn't noticeably changed yet in spite of growing anxieties about shifting tariffs, a possible recession, and the weakening dollar. "The consumer today is an empowered consumer that will still stick to what they want to do," Miebach said at Semafor's 2025 World Economy Summit on Wednesday. "They still want to make that trip." Miebach said that while "soft data" like headlines and consumer confidence studies would suggest a pullback in consumer spending, there is currently no evidence of that in the real-time spending information that Mastercard monitors. "The hard data is not reflecting yet where the consumer is," he said. In March, for example, he pointed out a 1.4% increase in consumer spending, which he said was "nothing out of the ordinary." "It's the most asked question that I get and then when I say what I just said. People say there must be something more," Miebach said about consumer spending. "But right now there is not." Consumer confidence registered at 92.9 in March, dropping to its lowest level since 2021, according to the Conference Board's latest survey. Wall Street is keeping a watchful eye on consumer sentiment, as a weaker outlook on spending could put a dent in corporate earnings and impact the stock market.
