Expected second-quarter EPS
Wall Street analysts have given Mastercard (MA) an average EPS estimate of $1.5 for the second quarter, reflecting a year-over-year rise.
The company is expected to benefit primarily from increased digital transactions as well as from the improving US economy. Analysts have given Mastercard a high EPS estimate of $1.57 and a low EPS estimate of $1.38.
Macroeconomic factors that could negatively affect consumer spending are expected to be hurdles for consumer financial companies such as Mastercard going forward. These companies’ businesses would be positively affected by supportive measures from the government.
For the second quarter, analysts expect Mastercard’s revenue to come in at $3.6 billion. They have given the company high and low estimates of $3.7 billion and $3.4 billion, respectively. Higher oil prices along with the company’s gross dollar volumes, switched transactions, and cross-border volumes will likely be the primary drivers of its second-quarter results.
In comparison, peers (XLF) American Express (AXP), Visa (V), and Discover Financial Services (DFS) are expected to report revenues of $10.1 billion, $5.0 billion, and $2.6 billion, respectively, in the quarter.
Higher oil prices could lead to higher spending, which could help Mastercard generate higher fees, providing a boost to its net revenue. The improving US economy could also positively impact the company’s revenue, as consumer confidence tends to increase in an improving economy, resulting in higher spending.
Mastercard's (MA) PE ratio stands at 27.92x on a next-12-month basis, implying a premium valuation compared to its competitors’ average of 22.43x.
Cleveland-Cliffs (CLF) is expected to report its first-quarter earnings results on April 25.
While the overall cannabis sector experienced weakness on April 23, some stocks managed to gain some positive momentum in the first half of the day.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.