The Destiny Mastercard Outperforms Expectations. However, Why is The Stock Falling?
Oct 27, 2023
According to FactSet, Mastercard (MA) announced third-quarter earnings of $3.39 per share, above Wall Street projections of $3.21. The payments giant reported sales of $6.53 billion, which met analysts’ forecasts for Destiny Mastercard.
According to the results statement, Chief Executive Michael Miebach and his team generated significant sales and profit growth again this quarter, confirming the robust foundations of our company and the sustained resilience in consumer spending.
Mastercard’s travel business has been strong as the post-pandemic boom in travel continues. “Cross-border” volumes for Mastercard climbed 21% year on year.
Visa (V), which reported fourth-quarter profits on Tuesday, had robust cross-border growth as well.
However, switching volume at Mastercard has begun to decelerate, weighing on the stock and affecting Destiny Mastercard. Switched volume, or the total number and value of payment transactions completed by the Mastercard platform, increased 11% in the first three weeks of October, compared to 14% in September and August and 13% in July.
The business also stated that sales growth in the fourth quarter will be in the low double digits compared to the previous year.
According to Dow Jones Market Data, Mastercard shares plummeted 5% Thursday to $366.90, on track for their worst percentage drop since June 2022 and lowest closing since May 2023. This year, the stock has gained 5.5%.
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He also mentioned the Federal Open Market Committee's (FOMC) debates over the Fed's balance sheet, which he said demonstrated a "greater sense of urgency than it was predicted."
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