MA: MasterCard Stock Drops on Earnings Miss

Operating expenses rose sharply during the quarter


MasterCardLogo MA: MasterCard Stock Drops on Earnings MissDespite higher quarterly earnings, MasterCard (MA) fell short of Wall Street expectations, sending MA stock down more than 5% in Friday morning trading.

MA posted a fourth-quarter profit of $623 million, up from $605 million in the year-ago quarter. Adjusted EPS came in at 57 cents, but that disappointed analysts, who had predicted earnings of 60 cents per share of MA stock, Reuters noted.

VisaPromo MA: MasterCard Stock Drops on Earnings Miss
Bet on Visa Stock Charging Higher

The second largest credit card issuer generated revenue of $2.13 billion during the quarter, up 12% over the same time last year, but that still came in below the $2.14 billion in quarterly MA revenue that analysts were looking for.

U.S. card holders increased purchase volumes made through MasterCard cards by 7.4% during the quarter. Globally, MA purchase volumes were up 11%.

MA said that its operating expenses jumped 21.1% during the quarter, partially due to $95 million provisioned to settle outstanding lawsuits. Total operating expenses at MA hit $1.21 billion during the quarter.

Earlier this month, MasterCard shares split 10-for-1, a move the company announced in December.

Over the past year, MA stock has gained more than 50%. MasterCard stock closed at $79.76 a share on Thursday.

Article printed from InvestorPlace Media,

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.