MasterCard Inc, the second largest payment network in the world, reported that quarterly earnings and revenue exceeded expectations due to increased spending of customers using credit and debit cards.
The net profit of MasterCard rose in the first quarter, ended March 31, by 12.7% to $ 1.08 billion, or $ 1.00 per share, from $ 959 million, or 86 cents a share, for the same period a year earlier.
Adjusted earnings were $ 1.01 per share, exceeding the averaged forecast of analysts polled by Reuters – at 95 cents.
The company's revenue rose 11.8% to $ 2.73 billion against a forecast of $ 2.65 billion.
MasterCard and its larger competitor Visa Inc (NYSE: V) generate revenue by facilitating transactions using credit and debit cards.
MasterCard, which processes more than 65,000 transactions per minute, reported that total payments using its cards around the world grew in the first quarter by 8% in local currencies to $1.18 trillion.
The volume of cross-border transactions using MasterCard cards jumped 13% in local currencies.
The company's expenses increased during the reporting period to $ 1.23 billion from $ 1.09 a year earlier, as advertising and marketing costs went up.
After the reports, the market value of MasterCard Inc. rose 1.5% at the close of the New York Stock Exchange.
As for the US stock market as a whole, it was in plus at the close of Tuesday session. Dow Jones Industrial Average rose 36.43 points (0.17%) to 20949.89 points, Standard & Poor's 500 rose 2.84 points (0.12%) to 2391.17 points and Nasdaq Composite added 3.76 points (0.06%) to 6095.37 points. At the same time, Nasdaq has updated the record peak, writes MarketWatch.
The stock market is updating the record level these weeks particularly due to the news that Trump administration wants to implement tax reforms that would cut corporate taxes.