Mastercard Q4 EPS Beats Estimates, Gross Volume Up 7% and Price Target Shifts
Mastercard reported Q4 adjusted EPS of $4.76 versus $4.25 consensus on revenue of $8.81 billion, while gross dollar volume rose 7% and cross-border volumes climbed 14%. Analysts adjusted price targets, with TD Cowen upping to $671, JPMorgan cutting to $655, and BofA lowering to $610.
1. Q4 Financial Results
On January 29, Mastercard reported fourth-quarter adjusted EPS of $4.76 against a consensus of $4.25, with revenue of $8.81 billion. Gross dollar volume increased 7% and cross-border volume rose 14% year-over-year due to resilient consumer spending.
2. Analyst Price Target Revisions
In recent weeks analysts updated price targets based on top-line momentum and solid organic VASS growth: TD Cowen raised its target to $671 from $668 with a Buy rating, JPMorgan cut its target to $655 from $685 with an Overweight rating, and BofA lowered its target to $610 from $616 while maintaining Neutral.
3. Strategic Restructuring Plan
The company announced a strategic restructuring impacting roughly 4% of its workforce, incurring a $200 million charge in the current quarter to reallocate resources to priority areas and strengthen value-added services growth.