Mastercard Prepares to Announce Q3 Earnings: Analysts Anticipate Growth

Mastercard Incorporated (MA), based in Purchase, New York, is a leader in global payment technology and financial services. With a market cap of $466.91 billion, Mastercard connects consumers, businesses, and financial institutions around the globe. The company is scheduled to release its Q3 earnings on Thursday, Oct. 24.

Q3 Earnings Forecast and Historical Performance

Analysts predict that MA will report a profit of $3.69 per share, reflecting an 8.9% increase from $3.39 in the same quarter last year. Notably, Mastercard has exceeded Wall Street’s EPS estimates for the past four quarters.

In the previous quarter, the firm posted adjusted earnings of $3.59 per share, beating the consensus estimate by 2.3%. The strong performance in Q2 was driven by robust consumer spending, increased cross-border volumes, and the growth of value-added services.

Looking Ahead: Fiscal Year Projections

For fiscal year 2024, analysts forecast EPS of $14.30, marking a 16.6% rise from $12.26 in fiscal year 2023.

Stock Performance and Market Comparison

Year-to-date, MA stock has risen 17.8%, which falls short of the returns seen in the broader S&P 500 Index ($SPX) with a 21.9% gain, and the iShares U.S. Financial Services ETF (IYG) showing 22.5% returns in the same period.

On Jul. 31, MA shares saw a more than 3% increase following the release of its Q2 results. The company’s revenue was reported at $7 billion, surpassing Wall Street expectations of $6.9 billion. Furthermore, its payment network net revenue climbed by 7% (or 9% on a currency-neutral basis).

Market Sentiment and Analyst Recommendations

The consensus rating for MA stock remains positive, holding an overall “Strong Buy” designation. Among the 38 analysts tracking the stock, 31 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and five propose a “Hold.”

Currently, MA’s average analyst price target stands at $526.03, indicating a potential upside of 4.7% from existing levels.

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On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes solely. For more information, please view the Barchart Disclosure Policy here.

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