Core Viewpoint - Mastercard reported strong fourth-quarter 2024 results, driven by increased gross dollar volume, cross-border transactions, and demand for value-added services, with a growing expertise in AI enhancing its business mix [1][2]. Financial Performance - Mastercard's EPS of $3.82 beat the Zacks Consensus Estimate by 3.8% and grew 20% year over year, while total revenue reached $7.5 billion, exceeding estimates by 1.4% and improving 14% from the previous year [2]. - Gross dollar volume grew 12% year over year to $2.6 trillion, meeting consensus estimates, and cross-border volume climbed 20% year over year [3]. Services and Innovation - The services segment contributed 41% of total net revenues, with value-added services generating $3.1 billion, up 16% year over year, driven by demand for consumer acquisition and market insights [4]. - Mastercard's AI capabilities, enhanced by the Brighterion acquisition, play a crucial role in cybersecurity and targeted marketing strategies [5]. Growth Drivers - Expansion in emerging markets, particularly Southeast Asia and Latin America, positions Mastercard for long-term growth, offsetting revenue losses from exiting Russia [6]. - The shift toward digital payments is a significant tailwind, with Mastercard leveraging its global network and cash reserves for organic growth and strategic acquisitions [7]. Shareholder Returns - In 2024, Mastercard repurchased 23 million shares worth $11 billion and paid $2.4 billion in dividends, with $14.5 billion remaining in share buyback authorization [8]. Future Estimates - The Zacks Consensus Estimate for Mastercard's 2025 and 2026 EPS implies a year-over-year increase of 9.5% and 16.9%, respectively, with stable revenue growth estimates of 12.1% and 12.5% [10]. Challenges - Adjusted operating expenses have consistently increased, with a 10.7% rise in 2022, 10.5% in 2023, and 11% in 2024, alongside a 16.1% increase in rebates and incentives in 2024 [11]. - Legal and regulatory challenges include settlements related to card fees and potential impacts from the Credit Card Competition Act of 2023, which could threaten Mastercard's market position [12][13]. Valuation - Mastercard's stock has gained 23.2% over the past year, underperforming its competitors and the S&P 500, with a forward P/E ratio of 34.72X, higher than its five-year median and the industry average [14][18].

Here's a look at the two payment processing companies and which stock is better for dividend investors.Mastercard (MA 0.58%) and Visa (V 0.15%) are incredibly similar payment processing companies with comparable product offerings and overlapping customers. As investments, both stocks have reliable track records and grow their dividends consistently, making them solid choices for investors seeking steady income with minimal risk.But which one is the better buy right now? While they may seem almost identical, ...

Over the years, Mastercard (MA 1.28%) has done nothing but reward its investors. Since the company's initial public offering (IPO) in May 2006, shares have skyrocketed, rising 12,160% (as of Feb. 3). A $1,000 investment would be worth $122,600 today.That gain is hard to overstate. Even these days, Mastercard continues to put up strong financial results. For prospective investors, is this top financial stock still a buy?Growing the top and bottom lineInvestors will appreciate Mastercard's ability to steadily ...

Dan Caplinger has no position in any of the stocks mentioned. Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy. ...

Global payment technology companies, Mastercard Inc MA and Visa Inc V, which process credit card payments and other financial transactions reported better-than-expected quarterly earnings on Thursday. Shall investors buy, sell or hold these companies? Here’s what technical analysis suggests.Technical Analysis Of Visa And MastercardTechnical analysis suggests both Visa and Mastercard stocks are currently overbought, indicating a potential correction may be imminent, according to Benzinga Pro. Visa shares clo ...

Mastercard Incorporated Fourth Quarter and Full Year 2024 Financial Results Conference Call January 30, 2025 Business Update Business Highlights Financial Overview January 30, 2025 2 ©2025 Mastercard Michael Miebach: 4th Quarter Selected Financial Performance ($ in millions, except per share data) | | 4Q 24 | | 4Q 23 | | YOY Growth | | | --- | --- | --- | --- | --- | --- | --- | | | Non-GAAP | | Non-GAAP | | As adjusted | Currency-neutral | | Net revenue | $ | 7,489 | $ | 6,548 | 14% | 16% | | Adjusted oper ...

Core Insights - Mastercard reported fourth-quarter 2024 adjusted earnings of $3.82 per share, exceeding the Zacks Consensus Estimate by 3.8%, with a year-over-year improvement of 20% [1] - Net revenues increased by 14% year over year to $7.5 billion, surpassing the consensus mark by 1.4% [1][2] Financial Performance - For the full year 2024, net revenues reached $28.2 billion, up from $25.1 billion in 2023, beating the Zacks Consensus Estimate of $28.06 billion [3] - Adjusted EPS for 2024 was $14.60, a 19% increase year over year, also exceeding the consensus mark of $14.47 [3] - Adjusted operating margin improved by 40 basis points year over year to 58.4% [3] Operational Metrics - Gross dollar volume increased by 12% on a local-currency basis to $2.6 trillion, aligning with the Zacks Consensus [4] - Cross-border volumes rose by 20% on a local currency basis, while switched transactions improved by 11% year over year to 42.2 billion, surpassing the consensus by 0.6% [5] - Net revenues from value-added services and solutions reached $3.1 billion, a 16% year-over-year increase, driven by higher demand for consumer acquisition and engagement [6] Expense and Income Analysis - Adjusted operating expenses rose by 14% year over year to $3.3 billion, primarily due to increased general and administrative costs [7] - Adjusted operating income grew by 15% year over year to $4.22 billion, exceeding the estimate of $4.14 billion [7] - Adjusted operating margin improved by 10 basis points year over year to 56.3% [7] Financial Position - As of December 31, 2024, Mastercard had cash and cash equivalents of $8.44 billion, down from $8.59 billion at the end of 2023, significantly higher than short-term debt of $750 million [8] - Total assets increased to $48.08 billion from $42.45 billion at the end of 2023, while long-term debt rose to $17.48 billion from $14.34 billion [8] - Total equity decreased to $6.52 billion from $6.98 billion at the end of 2023 [9] - Cash flows from operations for 2024 were $14.8 billion, up from $12 billion in the prior year [9] Capital Deployment - In Q4 2024, Mastercard repurchased 6.5 million shares for $3.4 billion and an additional 1.2 million shares for $644 million through January 27, 2025, leaving a buyback capacity of $14.5 billion [10] - Dividends paid in the quarter amounted to $606 million [10] Future Guidance - Management projects low-double-digit growth in net revenues for Q1 2025 and low-teens growth in adjusted operating expenses [11] - For the full year 2025, adjusted net revenues are expected to grow at a low-double-digit rate compared to 2024, with adjusted operating expenses anticipated to increase at a low-teens rate [12]

Core Insights - MasterCard reported revenue of $7.49 billion for the quarter ended December 2024, reflecting a year-over-year increase of 14.4% [1] - The earnings per share (EPS) for the quarter was $3.82, up from $3.18 in the same quarter last year, exceeding the consensus estimate of $3.68 by 3.80% [1] Financial Performance - The reported revenue surpassed the Zacks Consensus Estimate of $7.38 billion, resulting in a surprise of +1.44% [1] - MasterCard's stock has returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] Key Metrics - Switched transactions totaled 42.23 billion, exceeding the six-analyst average estimate of 41.96 billion [4] - Worldwide purchase volume across all MasterCard programs reached $2,114 billion, slightly below the five-analyst average estimate of $2,124.11 billion [4] - Purchase volume in the United States was $729 billion, surpassing the average estimate of $718.91 billion [4] - Gross dollar volume for Europe was $870 billion, slightly above the four-analyst average estimate of $864.76 billion [4]

Group 1 - MasterCard reported quarterly earnings of $3.82 per share, exceeding the Zacks Consensus Estimate of $3.68 per share, and up from $3.18 per share a year ago, representing an earnings surprise of 3.80% [1] - The company posted revenues of $7.49 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.44%, and compared to year-ago revenues of $6.55 billion [2] - MasterCard has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has gained approximately 4.2% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the upcoming quarter is $3.64 on revenues of $7.12 billion, and for the current fiscal year, it is $16.23 on revenues of $31.4 billion [7] - The Financial Transaction Services industry, to which MasterCard belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook [8]

Core Insights - Mastercard reported strong Q4 2024 earnings, exceeding market expectations with adjusted EPS of $3.82 and net revenue of $7.5 billion, reflecting robust growth in its payments network and value-added services [2][6]. Financial Performance - Adjusted EPS increased by 20.1% year-over-year from $3.18 in Q4 2023 to $3.82 in Q4 2024, surpassing the estimate of $3.69 [3]. - Net revenue rose to $7.5 billion, a 14% increase compared to $6.5 billion in Q4 2023, exceeding the estimated $7.385 billion [3][6]. - Gross dollar volume reached $2.6 trillion, marking a 12% increase from the previous year, driven by a 20% rise in cross-border volume [3][6]. - Operating income surged by 17% to $3.9 billion, with operating margins slightly increasing from 51.5% to 52.6% [7]. Strategic Operations - Mastercard is a key player in the financial technology sector, providing a comprehensive payments network and value-added services such as cybersecurity and analytics [4]. - The company has focused on strategic investments and expansion, enhancing its multi-rail payment systems and cybersecurity capabilities through acquisitions like Recorded Future [5]. - The growth in value-added services has strengthened customer loyalty and revenue, showcasing effective execution of strategic initiatives [7]. Future Outlook - Mastercard aims to sustain growth through strategic investments and an expanded focus on enhancing revenue streams and customer engagement [9]. - The company plans to advance its multi-rail systems and strengthen industry partnerships while monitoring regulatory changes and competitive pressures [10].