Mastercard Inc (NYSE:MA) stock fell 0.17% (As on January 27, 11:46:52 AM UTC-4, Source: Google Finance) after the company forecast revenue growth in the first quarter that missed Wall Street estimates. Net income moved up 6% to $2.5 billion. Gross dollar volume rose 8% in the quarter to $2.13 billion, including $699 million in the US. That was up 7% from a year earlier, while GDV grew 8% in the rest of the world to $1.43 billion, according to a presentation. In January through last Saturday, cross-border volume is up 42%
MA in the first quarter of FY 23 has reported the adjusted earnings per share of $$2.65, beating the analysts’ estimates for the adjusted earnings per share of $2.58. The company had reported the adjusted revenue growth of 12 percent to $5.8 billion in the first quarter of FY 23. This is in part driven by a 31% surge in cross-border volume. This was partly offset by total operating expenses, which increased by a tenth due to higher personnel costs and investments in “strategic initiatives across payments, services and new network capabilities. Other revenues increase of 11%, or 16% on a currency-neutral basis, which includes 1 percentage point of growth due to acquisitions. The remaining growth was driven primarily by the Company’s Cyber & Intelligence and Data & Services solutions. Rebates and incentives (contra-revenues) increase of 14%, or 18% on a currency-neutral basis, primarily due to increased volumes and transactions and new and renewed deals.
During the fourth quarter of 2022, Mastercard repurchased 7.4 million shares at a cost of $2.4 billion and paid $473 million in dividends. Quarter-to-date through January 23, the Company repurchased 1.6 million shares at a cost of $590 million, which leaves $11.6 billion remaining under the approved share repurchase programs. As of December 31, 2022, the Company’s customers had issued 3.1 billion Mastercard and Maestrobranded cards.
The firm expects revenue in the initial three months of 2023 to increase in the “high-end of high-single digits” range, according to Reuters. Analysts had penciled in current-quarter top-line growth of 10.7%. This year, revenue is expected to increase in the low teens on a non-GAAP basis, Mastercard said. On a currency neutral basis and stripping out acquisitions, the payments firm is expecting revenue to grow at the high end of low double digits.