Mastercard Says Consumer Spending Is Healthy, Clocks 10% Revenue Growth In Q1
Portfolio Pulse from Anusuya Lahiri
Mastercard Inc. (NYSE: MA) reported a 10% year-over-year increase in fiscal first-quarter net revenues, reaching $6.35 billion and surpassing consensus estimates. Adjusted EPS grew 18% to $3.31, also beating expectations. The company saw growth across payment network revenues, value-added services, and cross-border volumes. Operating expenses rose by 5%, with adjusted operating expenses up 9% on a currency-neutral basis. Mastercard repurchased 4.4 million shares for $2.0 billion and paid $616 million in dividends. For Q2, Mastercard anticipates high-single-digit net revenue growth, and for fiscal 2024, low-double-digit growth. Mastercard shares are down 1.35% at $445.11. The company's performance can also impact SPDR Select Sector Fund – Financial (NYSE: XLF) and iShares U.S. Financial Services ETF (NYSE: IYG).
May 01, 2024 | 3:16 pm
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POSITIVE IMPACT
The iShares U.S. Financial Services ETF, which includes Mastercard, may see a positive impact from Mastercard's Q1 earnings beat and optimistic revenue growth projections.
Given Mastercard's influence in the financial services sector, its positive earnings report and future growth expectations are likely to positively influence ETFs like IYG that hold Mastercard stocks.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75
POSITIVE IMPACT
Mastercard reported a 10% revenue increase and an 18% EPS growth in Q1, surpassing expectations. Shares are down 1.35% at $445.11, with a positive outlook for Q2 and FY2024.
Mastercard's strong Q1 performance and positive outlook for future growth, despite a short-term share price dip, suggest a likely positive impact on its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Mastercard's positive earnings report and growth outlook may positively impact the SPDR Select Sector Fund – Financial, given Mastercard's role in the financial sector.
As Mastercard plays a significant role in the financial sector, its strong performance and growth projections are likely to have a positive impact on ETFs like XLF that include Mastercard in their holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75