International Fee Growth Leads Mastercard's Expected Profit Gain

Core Insights - Mastercard is projected to report revenue of $6.47 billion for Q4 2023, showing an increase from $5.82 billion in Q4 2022, while diluted earnings per share are expected to be $3.07, up from $2.62 a year ago [1] - The international payments unit is expected to significantly contribute to growth, with cross-border volume fees anticipated to rise by 23% to $2.2 billion, which is approximately double the expected growth rate of domestic fees [2] Business Performance - Overall payment network revenue is expected to decline slightly on a sequential basis from Q3 2023, indicating a slowing economy [3] - Projections suggest that U.S. fee revenue will remain flat for the fourth consecutive quarter, with a potential drop in cross-border volume fees in the current first quarter [3] - A broader net revenue rebound is forecasted to begin in Q2 2024 [3] Stock Performance - Mastercard's shares have increased by approximately 16% over the past 12 months, with most gains occurring in the last three months [3]