MasterCard Inc. Earnings Up 16% Excluding Special Item

Processed transactions at MasterCard grew to 10.4 billion, an increase of 13%.

Jan 31, 2014 at 10:04AM

Today, MasterCard (NYSE:MA) -- excluding a special item related to its U.S. merchant litigations -- reported earnings of $0.57 per share in the fourth quarter of 2013, representing a 16% increase over the fourth quarter of 2012.

Images

In total, MasterCard grew its net income by 13%, excluding the special item, to $684 million in the fourth quarter. Including the $61 million after-tax charge, earnings per share were up 6% to $0.52, and net income stood at $623 million, a gain of 3%.

"We are very pleased with our performance this quarter and our full-year 2013 results reflect the overall strength of our global business," said CEO and president of MasterCard Ajay Banga in a statement. "In addition to signing several significant deals last quarter, we made new investments in processing and person-to person payments while expanding our MasterPass digital platform -- all supporting safe and seamless payment experiences."

MasterCard did highlight that its revenue in the fourth quarter was up 11% year over year after adjusting for currency impacts. This was driven by a 14% increase in the gross dollar volume to $1.1 trillion, an 18% increase in its cross-border volumes, and its processed transactions growing to 10.4 billion, an increase of 13%. The company noted the total impact of this growth was offset by a greater number of rebates and incentives, which was largely due to new and renewed agreements as well as increased volumes.

The company did see its expenses grow by 11% after excluding the litigation settlement, and 21% with it included. MasterCard said the reason for the heightened expenses "was primarily driven by higher investments in people and marketing to support strategic initiatives."

For the full year 2013 excluding the special item, MasterCard reported earnings per share of $2.62, an 18.6% increase over the $2.21 seen in 2012. In addition the company had an operating margin of 55.1% on a non-GAAP basis, versus 53.5% in 2012.

MasterCard repurchased $2.4 billion worth of its common stock (41 million shares) in 2013, and through the first 24 days of 2014 it repurchased an additional 4.2 million shares for $351 million. It still has $3.3 billion remaining on its repurchase authorization.

link

Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends MasterCard. The Motley Fool owns shares of MasterCard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers