Payment card industry giant Mastercard (MA.US) reported Q1 results that beat analysts' expectations. At the same time, however, news broke of an antitrust investigation by the U.S. Department of Justice (DoJ), which is investigating the debit card program in the U.S. and the company's relationship with rival payment networks. The company said it will cooperate with the DoJ's antitrust division to clarify the matter. Mastercard also beat expectations for cross-border transaction volume
Revenue: $5.7 billion vs. $5.64 billion forecast (11% y/y)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appEarnings per share: $2.8 vs. $2.71 forecasts (1.4% y/y)
Cross-border trading increased 35% y/y in U.S. dollar terms, all transactions combined increased 12% y/y.
- Mastercard, in a commentary on the results, warned of slower revenue growth in Q2 due to 'economic breathlessness'. This shows that a possible recessionary scenario could pose significant challenges to the company's business growth rate. The company expects revenue in the current quarter to grow at a single-digit rate therefore lower than the 10.7% estimated by analysts.
Mastercard (MA.US) shares H1 interval. The stock has defended itself in the zone defined by the 23.6 Fibonacci retracement of the upward wave from the autumn 2022 and the SMA200 (red line). If the trend continues, bulls may target the $384 level set by the January 2022 peak. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
