Mastercard Inc. shares are up 1.6% in premarket trading Thursday after the payments giant topped expectations with its latest results even as revenue and profits slipped due to the pandemic’s effects on global spending growth.
The company reported net income of $1.79 billion, or $1.78 a share, down from $2.1 billion, or $2.07 a share, in the year-earlier period. On an adjusted basis, Mastercard
earned $1.64 a share, down from $1.96 a share but ahead of the FactSet consensus, which called for $1.52 a share.
Mastercard’s revenue for the fourth quarter decreased to $4.12 billion from $4.41 billion, while analysts were looking for $4.0 billion. The decline “reflects the impacts of COVID-19” as well as a 1-percentage-point impact from acquisitions, the company said in its earnings release.
The company saw gross-dollar volume increase 1% in the quarter, while cross-border volume declined 29%, both in local currency. Cross-border volume is tied to international travel, which is down due to the pandemic.
Chief Executive Michael Miebach said that the company is “encouraged by the availability of effective vaccines” and focused on the innovations that will enrich the digital experience, strengthen security and trust, and enable choice through our multi-rail platform, all of which position us well for the future.”
Mastercard shares have declined 11.6% so far this year, as the S&P 500
has lost 0.1%.