Mastercard Q2 revenue beats estimates on payment network growth
MA•Revenue growth drivers
- Payment network growth - The company said revenue growth was driven by increases in gross dollar volume, cross-border volume, and switched transactions.
- Value-added services - Value-added services and solutions revenue rose 20%, driven by security, digital and authentication solutions, consumer acquisition and engagement services, and business and market insights.
- Customer incentives - Payment network rebates and incentives increased 22%, mainly due to new and renewed deals.
Q2 revenue and EPS beat estimates
Mastercard's Q2 revenue grew 14% year over year, beating analyst expectations. Q2 adjusted EPS also beat analyst expectations.
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $9.3 bln | $9.07 bln (28 Analysts) |
| Q2 Adjusted EPS | Beat | $5.04 | $4.77 (29 Analysts) |
| Q2 EPS | $4.97 |
Share repurchases and analyst coverage
Mastercard repurchased 9.8 million shares in Q2.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 42 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell". The average consensus recommendation for the online services peer group is "buy".
