Mastercard Reports Strong Q3 Earnings

Investing.com — Mastercard Incorporated (NYSE: MA) reported third-quarter earnings and revenue that surpassed analyst estimates, driven by robust consumer spending and strong demand for its value-added services. The company's shares rose by 1.7% following the announcement.

Key Financials

• Adjusted earnings per share: $3.89 (Analyst consensus: $3.74)
• Revenue for the quarter: $7.4 billion (Expected: $7.26 billion)
  • Year-over-Year increase: 13%
  • Currency-neutral increase: 14%

Mastercard's performance was bolstered by a 10% Year-over-Year increase in gross dollar volume to $2.5 trillion and a 17% rise in cross-border volume, both on a local currency basis. Switched transactions grew by 11% compared to the same period last year.

> "Our strong performance this quarter, with net revenue growth of 13%, or 14% on a currency-neutral basis, highlights how we are delivering across all aspects of our business," said Michael Miebach, Mastercard CEO.

Value-Added Services

These results reflect healthy consumer spending and ongoing solid demand for Mastercard's value-added services and solutions, where net revenue increased 18%, or 19% on a currency-neutral basis. The company's value-added services segment saw particularly strong growth, attributed to high demand for consulting and marketing services, as well as the scaling of fraud and security solutions.

Operating Expenses

Mastercard's operating expenses increased 25% Year-over-Year, primarily due to higher general and administrative expenses, including a restructuring charge in the third quarter of 2024.