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Mastercard (NYSE:MA) stock gained 1.1% in Thursday premarket trading after the payment network company’s Q2 earnings and revenue exceeded the average Wall Street estimates, reflecting solid consumer spending.
Q2 adjusted EPS of $4.15, beating the average analyst estimate of $4.02, rose from $3.73 in Q1 and $3.59 in last year’s Q2.
Q2 revenue of $8.13B, topping/trailing the $7.98B consensus, increased from $7.25B in the prior quarter and $6.96B a year ago.
“Overall, the second quarter was another strong one for Mastercard, with net revenue growth of 17% year-over-year, or 16% on a currency-neutral basis,” said CEO Michael Miebach
Q2 gross dollar volume of $2.63T, matching the Visible Alpha consensus, climbed from $2.42T in Q1 and $2.40T in last year’s Q2.
Payment network revenue increased 13% Y/Y, or 13% on a currency-neutral basis. Payment network rebates and incentives provided to customers 17%, or 16% on a currency-neutral basis. Value-added services and solutions net revenue grew 23%, or 22% on a currency-neutral basis.
Cross-border volume growth of 15%, on a local currency basis, was unchanged from Q1.
Switched transactions rose 10% Y/Y vs. 9% in Q1.
Q2 adjusted operating expenses of $3.26B rose from $2.95B in the previous quarter and $2.83B a year ago.
Q2 adjusted operating margin improved to 59.9% from 59.3% in Q1 and 59.4% in Q2 2024.
July month-to-date, Mastercard’s (NYSE:MA) switched volume increased 11%, the same pace as Q2. Switched transactions rose 10%, also the same as Q2. Cross-border volume growth, though, slowed to 14% in July from 15% in Q2.
Conference call at 9:00 AM ET.