Mastercard Earnings Preview: What to Expect
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Purchase, New York-based Mastercard Incorporated (MA) provides transaction processing and other payment-related products and services. Valued at $504 billion by market cap, Mastercard offers a range of integrated products and value-added services to millions of account holders, institutions, businesses, governments, and other organizations.
The payments giant is set to announce its third-quarter results before the market opens on Thursday, Oct. 30. Ahead of the event, analysts expect Mastercard to report an adjusted profit of $4.30 per share, up 10.5% from $3.89 per share reported in the year-ago quarter. Further, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, Mastercard is expected to deliver an adjusted EPS of $16.32, up 11.8% from $14.60 reported in 2024. While in fiscal 2026, its earnings are expected to soar 16.4% year-over-year to $19 per share.
MA stock prices have gained 11.3% over the past 52 weeks, lagging behind the Financial Select Sector SPDR Fund’s (XLF) 13.2% gains and the S&P 500 Index’s ($SPX) 14.4% returns during the same time frame.
Mastercard’s stock prices gained 1.3% in the trading session following the release of its robust Q2 results on Jul. 31. The company has continued to observe a solid momentum in its business. Driven by the constant growth in its payment network and value-added services and solutions, Mastercard’s revenues for the quarter surged 16.8% year-over-year to $8.1 billion, exceeding the Street expectations by 1.9%. Meanwhile, its adjusted net income grew 13% year-over-year to $3.8 billion, and its adjusted EPS of $4.15 surpassed the consensus estimates by 2.5%.
Analysts remain optimistic about the stock’s prospects. Mastercard maintains a consensus “Strong Buy” rating overall. Of the 36 analysts covering the stock, opinions include 25 “Strong Buys,” four “Moderate Buys,” and seven “Holds.” Its mean price target of $652.33 suggests a 16.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.