MasterCard Reveals 2Q EPS Beat as Spending Rises

By Features FOXBusiness

Spurred by increased spending, MasterCard (MA) revealed on Wednesday a stronger-than-expected 33% leap in second quarter profits.

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The Purchase, N.Y.-based credit-card heavyweight said it earned $608 million, or $4.76 a share, last quarter, compared with a profit of $458 million, or $3.49 a share, a year earlier. Analysts had called for EPS of just $4.23.

Revenue jumped 22% to $1.7 billion, surpassing the Streets view of $1.55 billion. Operating margins expanded to 53.1% from 52.6%.

MasterCards earnings beat was driven by a 16.4% rise in gross dollar volume on a local currency basis to $811 billion. Cardholders also increased their usage as processed transactions climbed 17.4%.

Solid global performance, including strong increases in volume and processed transactions, fueled double-digit revenue growth this quarter, CEO Ajay Banga said in a statement.

Shares of MasterCard gained 2.18% to $305.00 ahead of Wednesdays open, putting them on track to add to their 2011 rally of 33%.