Mastercard announces 36% increase in YOY revenue

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Mastercard Incorporated (NYSE: MA) reported second quarter 2021 earnings results on thursday. 

Net income increased 36% year-over-year to $4.5 billion. 

GAAP net income increased 46% to $ 2.1 billion, while adjusted net income increased 41% to $ 1.9 billion from last year. GAAP EPS increased 48% to $ 2.08 while Adjusted EPS increased 43% to $ 1.95 compared to the prior year period.

Here’s what analysts expect, in line with estimates compiled by FactSet   

  • Earnings : $1.74 per share, anticipated 
  • Revenue: $4.37 billion anticipated 
 Earning History 

 Mastercard posted its last earnings data on April 29. The company reported $1.74 earnings per share (EPS) for the first quarter of 2021, beating analysts’ consensus estimates of $1.55 by $0.19. Revenues accounted for $4.20 billion for the quarter, as against analysts’ expectations of $3.97 billion. Its quarterly revenue rose 4.8% compared to the same quarter last year.  

During the first quarter of 2021, the international payments firm repurchased approximately 3.9 million shares for $1.4 billion and paid $439 million in dividends. 

 The credit card giant recorded a 40% jump in contactless payments during the first quarter 2020 amid the coronavirus pandemic. However, its last year’s annual revenue still took a beating and declined by 9.37% from 2019. For Q4 FY 2020, Mastercard reported net revenue of $4.1 billion as against $4.4 billion during the corresponding period. As of July, Mastercard’s has a market cap of $380.01 billion.  

Annual Forecast  

 Analysts predict that MA’s EPS will be $7.79 for 2021, with the lowest EPS forecast at $7.36, and the highest EPS forecast at $8.23. MA’s revenue is forecasted to grow at a rate of 18.19% per year and earnings at the rate of 25.22% per year.   

 Plans  

Mastercard this week announced a new startup engagement program as part of the Mastercard Start Path accelerator program. The program aims to support companies working with fast-growing digital assets, blockchain, and cryptocurrency companies.  

Seven startups have already enrolled for the program, including digital wallet and trading platform Uphold, crypto storage firm GK8, American investment platform Domain Money, blockchain oracle startup SupraOracles, a blockchain infrastructure provider STACS, digital asset firm Taurus, and Mintable, a trading platform for issuing and trading nonfungible tokens (NFT). 

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