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].

Financial Performance - Fourth quarter net revenue reached $7.5 billion, a 14% increase year-over-year, or 16% on a currency-neutral basis[2] - Fourth quarter net income was $3.3 billion, with diluted earnings per share (EPS) of $3.64, reflecting a 20% increase in net income and a 23% increase in EPS year-over-year[4] - For the full year 2024, net revenue was $28.2 billion, a 12% increase from 2023, with net income of $12.9 billion, up 15%[9] - Adjusted diluted EPS for Q4 2024 was $3.82, a 20% increase compared to the previous year[3] - Operating income for the year ended December 31, 2024, reached $15,582 million, up 11.3% from $14,008 million in 2023[20] - Net income for 2024 was $12,874 million, representing a 15.0% increase compared to $11,195 million in 2023[22] - Basic earnings per share for Q4 2024 was $3.64, a 22.2% increase from $2.98 in Q4 2023[20] Revenue Growth - Gross dollar volume grew by 12% year-over-year, reaching $2.6 trillion, while cross-border volume increased by 20%[8] - Payment network net revenue increased by 13%, driven by growth in payment network rebates and incentives, which rose by 14%[8] - Value-added services and solutions net revenue increased by 16%, driven by strong demand for consumer acquisition and engagement services[10] - Net revenue for Q4 2024 was $7,489 million, a 14.4% increase from $6,548 million in Q4 2023[20] Expenses and Margins - Total operating expenses for Q4 2024 were $3.6 billion, a 12% increase year-over-year[2] - For the full year 2024, reported GAAP operating expenses were $12,585 million, with an operating margin of 55.3% and net income of $12,874 million, resulting in diluted earnings per share of $13.89[30] - The full year 2024 saw a 13% increase in operating expenses, while net income increased by 15%, leading to a 17% rise in diluted earnings per share compared to 2023[30] - The adjusted non-GAAP operating margin for Q4 2024 was 56.3%, compared to 56.2% in Q4 2023, reflecting a slight improvement[27] Tax and Litigation - The effective income tax rate for Q4 2024 was 14.1%, down from 16.0% in the same period last year[4] - The effective income tax rate for Q4 2024 was 14.1%, a decrease of 1.8 percentage points from Q4 2023[27] - The company incurred pre-tax litigation provisions of $680 million in 2024, primarily related to legal settlements in the U.K.[32] Share Repurchase and Capital - The company repurchased 6.5 million shares for $3.4 billion in Q4 2024 and 23.0 million shares for $11.0 billion throughout the year[11] - The company reported a total of $6,442 million in additional paid-in capital as of December 31, 2024, compared to $5,893 million in 2023[21] Assets and Liabilities - Total assets increased to $48,081 million in 2024, up from $42,448 million in 2023, reflecting a growth of 13.8%[21] - Total liabilities rose to $41,566 million in 2024, compared to $35,451 million in 2023, marking a 17.4% increase[21] - Cash provided by operating activities for 2024 was $14,780 million, an increase from $11,980 million in 2023[22] Transaction Volume and Growth - For the 3 months ended December 31, 2024, Mastercard's worldwide gross dollar volume (GDV) reached $2,561 billion, reflecting an 8.9% growth compared to the previous year[33] - For the 12 months ended December 31, 2024, Mastercard's worldwide GDV totaled $9,757 billion, representing an 8.1% increase year-over-year[33] - The total number of transactions worldwide reached 50,606 million, growing by 11.4%[33] - The total number of cards issued worldwide was 3,240 million, with a growth of 7.2% for the 3 months ended December 31, 2024[33] Regional Performance - In the United States, GDV for the same period was $1,767 billion, with a growth rate of 8.9% and a transaction volume of 39,486 million, which grew by 12.1%[33] - The Asia Pacific, Middle East, and Africa (APMEA) region saw a GDV of $2,353 billion for the 12 months, with a growth rate of 3.0%[33] - In Europe, GDV for the 12 months was $3,279 billion, reflecting a 12.8% growth compared to the previous year[33] - The Latin America region reported a GDV of $820 billion for the 12 months, with a growth rate of 10.0%[33] Strategic Initiatives - The company plans to streamline its organization through a restructuring charge of $190 million to enhance operational efficiency and support long-term growth[32] - The company continues to focus on expanding its payment products, including credit, charge, debit, and prepaid programs, to enhance transaction volumes and customer engagement[38]

Core Viewpoint - Analysts forecast that MasterCard will report quarterly earnings of $3.68 per share, reflecting a year-over-year increase of 15.7%, with revenues expected to reach $7.38 billion, an increase of 12.8% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% lower over the last 30 days, indicating a reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock performance [3]. Revenue Forecasts - Analysts predict 'Revenue- Transaction processing assessments' at $3.54 billion, a year-over-year change of +11.7% [5]. - 'Revenue- Domestic assessments' is expected to be $2.62 billion, reflecting a +10% change from the prior year [5]. - 'Revenue- Cross-border assessments' is forecasted to reach $2.63 billion, indicating a +19.8% change from the previous year [6]. - 'Revenue- Other network assessments' is estimated at $256.19 million, showing a +2.1% year-over-year change [6]. Gross Dollar Volume Estimates - The consensus estimate for 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - APMEA' is $618.72 billion, compared to $587 billion last year [7]. - For 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Canada', the estimate is $70.67 billion, up from $68 billion [7]. - 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Europe' is projected at $864.76 billion, compared to $761 billion last year [8]. - 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Latin America' is expected to be $222.97 billion, up from $208 billion [8]. - The worldwide gross dollar volume is estimated to reach $2,561.90 billion, compared to $2,352 billion in the same quarter last year [9]. - 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - United States' is forecasted at $784.78 billion, compared to $727 billion last year [10]. Stock Performance - Over the past month, MasterCard shares have recorded returns of +4%, outperforming the Zacks S&P 500 composite's +1.7% change [11].