MA Earnings Prediction
The chart below shows how MA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MA sees a +0.19% change in stock price 10 days leading up to the earnings, and a +2.67% change 10 days following the report. On the earnings day itself, the stock moves by -0.81%. This data can give you a slight idea of what to expect for the next quarter's release.
MA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.37B
12.80%
5.86%
Gross Margin
--
--
--
Operating Margin
59.52%
0.51%
0.10%
Net Margin
44.28%
-9.54%
-5.38%
EPS
3.53
4.13%
0.86%
No Data Available
MA Earnings Analysis
Mastercard Incorporated Corporation (MA.N) Earnings Conference Call
Positive
Revenue Surge: 1. Strong Revenue Growth: Mastercard reported a 14% increase in net revenues for Q3 2024, driven by healthy consumer spending and robust cross-border volume growth of 17% year-over-year.
Adjusted Net Income Increase: 2. Increased Adjusted Net Income: Adjusted net income rose by 13% compared to the previous year, reflecting strong operating income growth.
Share Repurchase Impact: 3. Significant Share Repurchases: During the quarter, Mastercard repurchased $2.9 billion worth of stock, contributing an additional $0.08 to earnings per share (EPS), which increased by 16% to $3.89.
Value-Added Services Growth: 4. Growth in Value-Added Services: Net revenue from value-added services and solutions grew by 19% year-over-year, driven by strong demand for consulting, marketing services, and fraud and security solutions.
Global Acceptance Expansion: 5. Expansion in Global Acceptance: Mastercard's acceptance has doubled over the last five years, with tap-on-phone technology now live in over 110 markets, significantly increasing transaction flows.
Negative
Operating Expenses Surge: 1. Increased Operating Expenses: Operating expenses rose by 12% in Q3 2024, outpacing the 14% increase in net revenues, indicating rising costs that could pressure margins.
Q4 Revenue Growth Outlook: 2. Lowered Q4 Revenue Growth Outlook: The company expects Q4 2024 net revenue growth to be in the low-teens range, which is a slowdown compared to previous quarters, suggesting potential challenges ahead.
Tax Rate Increase Impact: 3. High Anticipated Tax Rate Impact: The anticipated impact of the Pillar Two global minimum tax rules is expected to increase the tax rate by approximately 4%, which could reduce net income in future periods.
Market Competition Impact: 4. Competitive Market Pressures: The competitive environment remains intense, leading to increased incentives and rebates to win volume, which could compress net pricing and affect profitability.
Minimal Acquisition Impact: 5. Limited Impact from Acquisitions: The forecast indicates that acquisitions are expected to have a minimal impact on revenue growth rates, suggesting that organic growth may be slowing.
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MA Earning Call Sentiment
Mastercard Incorporated (MA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
MA.N
2.65%Positive
The earnings call indicates strong financial performance with a 14% revenue increase and a 16% EPS rise, supported by healthy consumer spending and cross-border growth. The share repurchase program and optimistic guidance for revenue growth further boost sentiment. However, the restructuring charge and competitive pressures are concerns, but they are offset by strategic initiatives in cybersecurity and partnerships. The Q&A session reveals positive consumer trends, strong tokenization adoption, and growth in B2B volumes, reinforcing a positive outlook. Thus, the stock price is likely to move positively (2% to 8%) over the next two weeks.