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Mastercard Incorporated (MA) is scheduled to report its Q2 2012 results on August 1, 2012, before market opens. The street expects EPS and revenue of $5.58 and $1.88B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MA and the news from its closest competitors.

Mastercard Incorporated Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $5.36 EPS, beating analyst estimates of $5.30.

Mastercard Incorporated EPS Historical Results vs Estimates

The consensus EPS estimate is $5.58 based on 32 analysts' estimates, up from $4.76 a year ago. Revenue estimates are $1.88B, up from $1.67B a year ago. The median target price by analysts for the stock is $500.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 8, 2012, UBS (UBS) downgraded the company from Neutral to Sell.
  • On June 6, 2012, Stifel Nicolaus (SF) reiterated Buy rating for the company.
  • On May 3, 2012, UBS reiterated Neutral rating for the company.
  • On May 3, 2012, FBR Capital (FBRC) reiterated Outperform rating for the company.
  • On April 9, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On April 5, 2012, Oppenheimer (OPY) reiterated Outperform rating for the company.
  • On February 29, 2012, UBS initiated Neutral rating for the company.
  • On February 6, 2012, FBR Capital reiterated Outperform rating for the company.
  • On February 3, 2012, Oppenheimer reiterated Outperform rating for the company.
  • On February 3, 2012, Barclays Capital (BCS) reiterated Overweight rating for the company.

Latest News

  • On July 14, 2012, MasterCard Inc. announced that has agreed to a Memorandum of Understanding (MOU) to settle the current U.S. merchant class litigation. The MOU has been executed by all of the defendants - which include MasterCard, Visa and a number of banks - and the court-appointed class counsel for the merchants.
  • On July 2, 2012, MasterCard Inc. and Deutsche Telekom announced a European partnership to enable consumers to use their mobile phones as a convenient and secure way to pay. The partnership aims to make mobile payments a reality for Deutsche Telekom's 93 million mobile customers across Europe.
  • On June 5, 2012, MasterCard Inc. announced that its Board of Directors has declared a cash dividend of $0.30 per share payable on August 9, 2012 to holders of record of its Class A common stock and Class B common stock as of July 9, 2012.
  • On May 24, 2012, Dow Jones reported that Telefonica SA and MasterCard Inc launched a mobile money service in Argentina focus on millions of wireless users who don't have a bank account.
  • On May 2, 2012, MasterCard Inc. announced that for fiscal 2012, it continue to expect about a 2% to 3% point headwind to as-reported net revenue, net income and EPS growth.
  • On February 23, 2012, Reuters reported that MasterCard Inc. and Telefonica SA's joint venture has unveiled brand name-Wanda. Wanda will provide Mobile payment solutions to over 87 million movistar customers in 12 markets where it will operate.
  • On February 23, 2012, MasterCard Inc. and BOKU, Inc., announced a partnership that will enhance the shopping experience for consumers by allowing them to make payments, receive discounts and targeted offers, and monitor spending - all via their mobile phones anywhere MasterCard PayPass is accepted.
  • On February 7, 2012, MasterCard Inc. announced that its Board of Directors has increased the Company's quarterly cash dividend to $0.30 per share, an increase of 100% over the previous dividend level of $0.15 per share.
  • On February 2, 2012, MasterCard Inc. announced that for fiscal 2012, it expects about a 2% to 3% point headwind to as-reported net revenue, net income and earnings per share (EPS) growth.

Competitors

American Express (AXP), Discover Financial Services (DFS), and Visa (V) are considered major competitors for Mastercard and the table below provides the key metrics for these companies and the industry.

Mastercard Incorporated key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

MA Chart

MA data by YCharts

Competitors' Latest Development

  • On July 25, 2012, Visa Inc announced that for fiscal 2012, it has updated earnings guidance and expects adjusted annual diluted class A common stock earnings per share growth in the low twenties.
  • On July 14, 2012, Visa Inc, MasterCard and U.S. financial institution defendants announced that they have signed a memorandum of understanding to enter into a settlement agreement to resolve the Class Plaintiffs' claims in the multi-district interchange litigation (MDL).
  • On June 7, 2012, Tree.Com Inc announced that it has completed the sale of substantially all of the operating assets of its Home Loan Center, Inc. business to a wholly owned subsidiary of Discover Financial Services.
  • On May 5, 2012, Faruqi & Faruqi, LLP, a New York securities firm, announced that it is investigating the Board of Directors and officers of Discover Financial Services ("Discover" or the "Company").
  • On May 2, 2012, Visa Inc updates its financial outlook for fiscal 2012, the Company now expects adjusted annual diluted class A common stock earnings per share growth in the range of high teens to low twenties and affirmed its fiscal 2012 net revenue growth in the low double digits.
  • On April 18, 2012, SeeNews - The Corporate Wire reported that the shares of Apple Inc (AAPL), Visa Inc (V), Intel Corp (INTC), The Coca-Cola Company (KO) and Bank of America Corp (BAC) can be traded on the Bucharest bourse as of April 18, 2012.
  • On April 11, 2012, Bucharest Stock Exchange announced that Apple Inc, Bank of America Corp, Intel Corp, The Coca-Cola Company and Visa Inc will start trading on the alternative trading system of the Bucharest Stock Exchange on April 18, 2012.
  • On March 26, 2012, American Express Company announced that the Board of Directors have approved a $0.02 - or 11% increase in the quarterly dividend on the Company's common stock.
  • On March 13, 2012, Discover Financial Services announced that its board of directors has approved a new share repurchase program, authorizing the company to purchase up to $2 billion of its common stock.
  • On March 8, 2012, American Express Company and Morgan Stanley (MS) launched two new co-branded Cards. The Morgan Stanley Credit Card from American Express and The Platinum Card from American Express exclusively for Morgan Stanley.
  • On March 7, 2012, Discover Financial Services and National Payments Corporation of India (NPCI) announced they have entered into a strategic alliance resulting in acceptance of Discover cards and Diners Club International (DCI) cards at NPCI ATMs and point-of-sale terminals for purchases in India.
  • On February 27, 2012, Visa Inc and Intel Corporation announced a strategic agreement to develop mobile commerce solutions tailored to consumers in developed and developing countries.
  • On February 23, 2012, Discover Financial Services's PULSE and Obopay have agreed to enable real-time money transfer capabilities for PULSE financial institution participants.
  • On February 9, 2012, Monitise Plc (Monitise) announced that Visa DPS, the issuer processor of Visa transactions in the U.S., and Monitise, a provider of mobile banking services, have launched a one-stop solution for mobile services.
  • On February 8, 2012, Tree.Com Inc announced that it has signed an amendment to the asset purchase agreement related to the sale of substantially all of the operating assets of its Home Loan Center subsidiary to Discover Financial Services.
  • On February 8, 2012, Visa Inc updated financial outlook for fiscal 2012 and annual net revenue growth in the low double digits; adjusted annual diluted class A common stock earnings per share growth in the high teens.

Technical Overview


The stock has a market capitalization of $53.56B and is currently trading at $423.77 with a 52 week range of $291.67 - $466.98. The stock's year-to-date performance has been 13.87%. It is currently trading above 50 and 200 SMA, but below 20 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Mastercard Reports Q2 Earnings On August 1