Mastercard (ticker: MA) has reported third-quarter earnings that have exceeded Wall Street estimates, driven by an increase in cross-border spending due to positive international travel trends. The company’s earnings per share reached $3.39, surpassing the estimated $3.21, according to FactSet. Additionally, Mastercard’s revenue of $6.53 billion aligns with analysts’ expectations.
In an earnings release, Chief Executive Michael Miebach expressed satisfaction with the strong revenue and earnings growth achieved during the quarter. He attributed this success to the solid fundamentals of Mastercard’s business and the continued resilience in consumer spending.
Mastercard’s travel segment continues to show strength as the rebound in postpandemic travel persists. The company experienced a notable 21% increase in “cross-border” volumes compared to the previous year. This positive trend aligns with the strong cross-border growth reported by Visa (V), which released its fourth-quarter earnings earlier this week.
However, there has been a slight slowdown in Mastercard’s switched volume, which has impacted the stock performance. Switched volume refers to the total number and value of payment transactions processed through the Mastercard platform. In the first three weeks of October, the growth of switched volume was 11%, lower than the 14% reported in September and August, as well as the 13% from July.
Despite these challenges, Mastercard remains optimistic about its future prospects. As of premarket trading on Thursday, the company’s stock had gained 11% in value this year, despite a 2.5% decline to $376.52 prior to the session.
