Mastercard beats expectations, shares rise

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 1.7% following the announcement.

The payment technology giant reported adjusted earnings per share of $3.89, beating the analyst consensus of $3.74. Revenue for the quarter came in at $7.4 billion, exceeding expectations of $7.26 billion and representing a 13% increase YoY, or 14% on a currency-neutral basis.

Mastercard (NYSE:MA)'s performance was bolstered by a 10% YoY 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. "These results reflect healthy consumer spending and ongoing solid demand for our value-added services and solutions, where net revenue increased 18%, or 19% on a currency-neutral basis."

The company's value-added services and solutions segment saw particularly strong growth, with net revenue increasing 18%, or 19% on a currency-neutral basis. This growth was attributed to strong demand for consulting and marketing services, as well as the scaling of fraud and security solutions.

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