Earnings Preview: MasterCard

MasterCard (MA) is expected to report Q2 earnings Thursday, July 30 before the market open with a conference call scheduled for 9 am ET.

Guidance

Analysts are looking for EPS of $2.42 on revenue of $1.25B. The consensus range is $2.20-$2.67 for EPS, and $1.2B-$1.32B for revenue, according to First Call.

Analyst Views

Positive trends that might help MasterCard this earnings period are the growth in credit card usage, especially internationally, and cost cutting measures that should help operating margins. The most salient negative factor for this quarter's results is the continuing deceleration of consumer spending.

On July 21, William Blair raised its estimates for Visa (V) and MasterCard to reflect an improved volume outlook.

At its annual stockholders meeting in June, MasterCard CEO Robert W. Selander noted that while the financial services industry has experienced challenging economic conditions, MasterCard continues to deliver shareholder value and the company is well positioned for the long term.

Comments

[Viva la VISA!:]

Can anyone tell me WHY! has Visa been staying under $70.00 p/s when they do twice as much business as Mastercard and their earnings are always over the top. I feel something is wrong or are the Bankers controlling this stock for some reason.

Jul 30 12:07 AM