MasterCard Incorporated Earnings Preview: Can This Streak Continue?

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Mastercard Incorporated (NYSE:MA) will report earnings before markets open on Wednesday, May 1st. MasterCard, Inc. is a global payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of financial institutions. The Company offers transaction processing services for credit and debit cards, electronic cash, automated teller machines, and travelers checks.

Here is your Cheat Sheet to Mastercard Incorporated Earnings:

Earnings Expectations: Analysts expect earnings of $6.18 per share on revenues of $1.93 billion. Currently, the company’s P/E ratio stands at 24.25.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $6.45 to a profit $6.35. For the current year, the average estimate is a profit of $25.48, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Mastercard Incorporated has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 4,992 5,099 5,539 6,714 7,391
Diluted EPS ($) -1.94 11.16 14.05 14.85 21.94

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 1,728 1,758 1,820 1,918 1,895
Diluted EPS ($) 0.1484 5.36 5.55 6.17 4.802

Past Performance:
Mastercard Incorporated has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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