Mastercard had a strong second quarter, beating Wall Street’s revenue and earnings expectations and slightly raising its full-year outlook.
The company reported adjusted earnings of $5.04 per share, which was higher than the $4.77 expected by analysts polled by FactSet. Revenue rose to $9.28 billion from $8.13 billion a year ago, also beating Wall Street’s forecast of $9.08 billion.
Switched transactions, which track the number of authorizations and clearings Mastercard processes, increased 9% to 47.4 billion. The company said this shows strong global consumer spending and a steady move toward electronic payments.
Mastercard said the strong quarter was due to growth in its payment network and value-added services. Management raised its full-year revenue growth forecast to the low-teens range, up from the previous low-double-digit to low-teens range. Before the report, Citi Research expected net revenue growth to match the company’s earlier guidance, with no big surprises.
Investors reacted positively to the results. Mastercard shares rose 2.4% in premarket trading on Thursday, beating the broader market, while Visa’s stock stayed about the same.
