Mastercard (MA) stock rose 2.2% in Thursday premarket trading after the card payment network’s earnings and revenue exceeded Wall Street expectations as resilient consumer spending continued to support volume on its network.
Q4 adjusted EPS of $4.76, beating the average analyst estimate of $4.24, rose from $4.38 in Q3 and $3.82 in Q4 2024.
Q4 revenue of $8.81B, topping the $8.78B consensus, increased from $8.60B in the previous quarter and $7.49B in the year-ago period.
Q4 gross dollar volume of $2.82T, vs. the Visible Alpha consensus of $2.81T, climbed from $2.75T in Q3 and $2.57T in Q4 2024.
“The overall macroeconomic environment is supportive, and we continue to see healthy consumer and business spending,” said CEO Michael Miebach. “That, together with trusted technology, constant innovation, and deep partnerships, powers our performance.”
Q4 adjusted operating margin of 57.7% slipped from 58.8% in the previous quarter and widened from 56.3% a year ago.
Payment network revenue increased 12% Y/Y, or 9% on a currency-neutral basis. Payment network rebates and incentives provided to customers rose 20%, or 17% on a currency-neutral basis. Value-added services and solutions net revenue rose 26%, or 22% on a currency-neutral basis.
Cross-border volume growth of 14%, on a local currency basis, compared with 15% in Q3.
Switched transactions rose 10% Y/Y, the same increase as in Q3.
January month-to-date, Mastercard’s (MA) switched volume rose 9%, vs. 9% in Q4. Switched transactions increased 10% vs. 10% in Q4. Cross-border volume growth of 13% vs. 14% in Q4.
Conference call at 9:00 AM ET.