On Feb. 9, MasterCard
- Results were strong across the board, including a 17.2% increase in sales, a 16.7% increase in purchase volume to $391 billion, a 17.4% increase in processed transactions, and a 12.3% increase in total card issuance. There are now 817 million MasterCards worldwide.
- According to MasterCard's CEO, "Cardholders around the world used their MasterCard cards for transactions totaling almost $2 trillion in 2006 -- doubling the GDV [gross dollar volume] we reported only five years ago...."
- Operating expenses, excluding special items, increased 0.5%. Net income swung to $41 million from a $53 million loss last year.
- Despite the great numbers, the stock is down 8% as of this writing -- the Street is worried about margins. The company benefited from pricing increases in 2006, but it doesn't plan for any major pricing increases in 2007. MasterCard's CFO mentioned that the company could experience margin pressures.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$839,163 |
$715,918 |
17.2% |
Net Profit |
$40,902 |
($52,908) |
N/A |
EPS |
$0.30 |
($0.39) |
N/A |
Diluted Shares |
135,700 |
134,969 |
0.5% |
Get back to basics with a look at the income statement.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash |
$1,185,080 |
$545,273 |
117.3% |
Investments |
$1,286,580 |
$714,147 |
80.2% |
Total Current Assets |
$3,577,229 |
$2,227,898 |
60.6% |
Total Assets |
$5,082,470 |
$3,700,544 |
37.3% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Current Liabilities |
$1,811,590 |
$1,556,703 |
16.4% |
Total Liabilities |
$2,713,491 |
$2,526,776 |
7.4% |
Equity (Book Value) |
$2,364,359 |
$1,169,148 |
102.2% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$650,161 |
$272,848 |
138.3% |
Capital Expenditures |
$61,204 |
$43,866 |
39.5% |
Free Cash Flow |
$588,957 |
$228,982 |
157.2% |
Find out why Fools always follow the money.
Related Companies:
-
American Express
(NYSE:AXP) -
Capital One Financial
(NYSE:COF) -
CompuCredit
(NASDAQ:CCRT)
Related Foolishness:
MasterCard is a Motley Fool Inside Value recommendation. Discover more of the market's best bargains with a free 30-day trial subscription.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He does not own any of the shares mentioned. The Motley Fool has a disclosure policy.