Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- Mastercard Inc reported a rise in third-quarter profit on Thursday as solid consumer and business spending lifted payment volumes and its services business grew sharply.
Net revenue increased 17% to $8.6 billion, above analysts’ estimates of $8.54 billion, driven by a 9% rise in gross dollar volume and 15% growth in cross-border spending.
Adjusted earnings per share came in at $4.38, topping expectations of $4.32.
Demand for travel and everyday purchases has remained steady despite economic uncertainty.
Its value-added services, which include cybersecurity, data analytics and marketing tools, grew 25% from a year earlier and now contribute a larger share of revenue growth.
Operating expenses rose 5% due to higher administrative costs and acquisitions, while the effective tax rate climbed to 21.4% after new global minimum tax rules took effect in several markets.
Chief Executive Michael Miebach said the quarter reflected “healthy consumer and business spending” and highlighted the launch of new products such as the Mastercard Commerce Media network and expanded cyber intelligence offerings.
Mastercard’s payment network processed $2.7 trillion in transactions during the quarter, with switched transactions up 10%. The company ended September with 3.6 billion Mastercard- and Maestro-branded cards in circulation.
Shares of the payments processor were marginally lower in premarket trading.