MasterCard Profits Top Analyst Expectations

MasterCard

MasterCard Inc. on Thursday reported stronger-than-expected earnings for its third quarter, profits that were only slightly slowed by an increase in rebates and incentive offers.

For the period ended September 30, the company posted earnings of $977 million, or 86 cents a share, that’s compared with $1.02 billion, or 88 cents a share, a year earlier.

Results included an after-tax related charge of $50 million for the termination of a U.S. employee pension plan.

Excluding that charge, per-share earnings were 91 cents.

Revenue grew 1.6% to $2.53 billion, or 8% excluding currency impacts.

Analysts had projected 87 cents a share in profit and $2.54 billion in revenue.

Purchase volume was also up 12%, on a constant-currency basis, to $852 billion. Processed transactions grew 12% to 12.3 billion, while cross-border volumes grew 16%.