MasterCard Inc. (MA - Analyst Report) reported first-quarter 2015 operating earnings per share (EPS) of 91 cents, which comfortably exceeded both the Zacks Consensus Estimate of 80 cents and the year-ago quarter figure of 73 cents. The company has, therefore, kept its earnings streak alive in all the trailing four quarters with an average beat of 9.2%.
Mastercard Inc. – Earnings Surprise | FindTheCompany
Including the dilutive impact from acquisition of 2 cents per share, net income came in at 89 cents, up 21.9% year over year.
Results reflected an improved top line on increased number of processed transactions and strong gross dollar value (GDV) growth during the reported quarter, along with a lower tax rate.
Net revenue grew 3% year over year and 8% on a constant currency basis to $2.23 billion, marginally missing the Zacks Consensus Estimate of $2.29 billion. Acquisitions in the quarter accounted for 2% of total revenue growth.
The upside was primarily driven by a 12% rise in the number of processed transactions to 11.0 billion along with a 19% increase in cross-border volumes. These were partially offset by higher rebates and incentives, primarily attributable to new and renewed business alliances.
During the reported quarter, the GDV increased 12% to $1.1 trillion, while worldwide purchase volume rose 12% year over year – on a constant currency basis – to $783 billion. As of Mar 31, 2015, MasterCard issued over 2.2 billion MasterCard and Maestro-branded cards.
Total operating expenses declined 1% year over year to $879 million. Foreign exchange gains as well as the ongoing cost management initiatives undertaken by the company helped moderate overall expenses.
Operating income was up 5% year over year to $1.35 billion in the reported quarter. Interest expenses rose to $17 million as against $6 million in the prior-year quarter.
Financial Update
During the quarter, MasterCard’s net operating cash flow increased 60.3% year over year to $911 million.
