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Mastercard Q4 Earnings Beat Estimates on GDV & Transactions Growth
MAMastercard(MA) ZACKS·2025-01-30 18:25

Core Insights - Mastercard reported fourth-quarter 2024 adjusted earnings of 3.82pershare,exceedingtheZacksConsensusEstimateby3.83.82 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 28.2billion,upfrom28.2 billion, up from 25.1 billion in 2023, beating the Zacks Consensus Estimate of 28.06billion[3]−AdjustedEPSfor2024was28.06 billion [3] - Adjusted EPS for 2024 was 14.60, a 19% increase year over year, also exceeding the consensus mark of 14.47[3]−Adjustedoperatingmarginimprovedby40basispointsyearoveryearto58.414.47 [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 3.1billion,a163.1 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 4.22billion,exceedingtheestimateof4.22 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 8.44billion,downfrom8.44 billion, down from 8.59 billion at the end of 2023, significantly higher than short-term debt of 750million[8]−Totalassetsincreasedto750 million [8] - Total assets increased to 48.08 billion from 42.45billionattheendof2023,whilelong−termdebtroseto42.45 billion at the end of 2023, while long-term debt rose to 17.48 billion from 14.34billion[8]−Totalequitydecreasedto14.34 billion [8] - Total equity decreased to 6.52 billion from 6.98billionattheendof2023[9]−Cashflowsfromoperationsfor2024were6.98 billion at the end of 2023 [9] - Cash flows from operations for 2024 were 14.8 billion, up from 12billionintheprioryear[9]CapitalDeployment−InQ42024,Mastercardrepurchased6.5millionsharesfor12 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 644millionthroughJanuary27,2025,leavingabuybackcapacityof644 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]