Earnings Preview: MasterCard

May. 1.12 | About: MasterCard Incorporated (MA)

MasterCard (NYSE:MA) is expected to report Q1 results before the market open on Wednesday May 2 with a conference call at 9:00 am.

Guidance

Analysts' consensus estimate for MasterCard's EPS is $5.30, and the consensus estimate for revenue is $1.73B. A number of banks, as well as credit card network American Express (NYSE:AXP), have reported that credit metrics have improved in recent months. Moreover, American Express and another credit card network, Capital One (NYSE:COF), both reported significantly stronger than expected Q1 results.

Analyst Views

Meanwhile, several analysts have issued upbeat notes about MasterCard's outlook in recent weeks. JP Morgan raised its target on MasterCard today to $57 from $440 , as it believes that the company's volume trends have remained strong. The firm maintained an Overweight rating on the shares. Similarly, on April 9, Stifel Nicolaus hiked its target on the stock to $505 from $440. The firm predicted that MasterCard's EPS would surpass expectations as a result of strong pricing trends, pricing initiatives, and market share gains. The firm maintained a Buy rating on the stock.