Mastercard Inc (NYSE:MA) stock was down on Tuesday following the poor revenue results in its most recent earnings report.
During the fourth quarter of 2016, Mastercard Inc reported revenue of $2.76 billion. This is an increase over its revenue of $2.52 billion during the fourth quarter of 2015. However, it just missed Wall Street’s revenue estimate of $2.79 billion for the quarter.
Mastercard Inc reported earnings per share of 86 cents for the fourth quarter of the year. The company’s earnings per share from the same time last year was 79 cents. MA’s earnings per share for the fourth quarter of 2016 came in one penny above Wall Street’s estimates.
Net income reported by Mastercard Inc during the fourth quarter of 2016 was $933 million. The financial services company’s net income from the same period of the year prior was $890 million.
Mastercard Inc said that total operating expenses for the fourth quarter of 2016 were down 1% from the same time last year. It also noted that operating income was up 23% and that other expenses were down to $52 million from $82 million during the same time last year. Its effective tax rate was 28.8% for the quarter.
Mastercard Inc said that revenue growth in the fourth quarter of 2016 was driven by switched transactions increasing by 17%, a 9% increase in gross dollar volume and cross-border volumes increasing 13%.
For the full year of 2017, Mastercard Inc reported revenue of $10.78 billion and earnings per share of $3.69. Wall Street was expecting MA to report revenue of $10.80 billion with earnings per share of $3.76 for the year.
MA stock was down 2% as of Tuesday morning.