MasterCard Profit Falls But Tops Expectations

MasterCard Inc. reported Thursday first-quarter earnings that fell to $959 million, or 86 cents a share, from $1.02 billion, or 89 cents a share, in the same period a year ago. The FactSet earnings-per-share consensus was 85 cents. The credit card company said revenue rose to $2.45 billion from $2.23 billion, beating the FactSet consensus of $2.38 billion. Processed transactions increased 14% to 12.6 billion, but gross dollar volume declined 13% on a local currency basis to $1.1 trillion. "Our encryption and token services are helping to support new ways to pay in an increasingly digital world, while our APT and Pinpoint businesses are helping to drive stronger connections between merchants and their customers," said Chief Executive Ajay Banga. The stock, which was indicated down more than 1% in premarket trade, has inched up 1.1% year to date, while the S&P 500 has gained 2.5%.