MasterCard Earnings Preview: Analysts Expect Rising Revenue

MasterCard MA releases its next round of earnings this Wednesday, August 3, 2011. Here's Benzinga's essential guide to MasterCard's second quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of $4.21 per share and revenues of $1.55 billion. MasterCard's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of $3.49 per share on revenues of $1.36 billion. We'll have to wait for Wednesday to see if MasterCard has accomplished the estimated 20.6% rise in EPS and 14% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of MasterCard were trading at $303.09. Since January 1st, shares of MasterCard have given investors a return of 35.5%. For a full 12 months, the return has risen by 38.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for MasterCard is a Moderate Buy. The strength of this rating has stayed consistent over the past three months.

Competitors:

Wondering how MasterCard compares to rivals in the same sector? Here are a few of the company's peers.

• American Express Company AXP: Moderate Buy with a $1.07 recent quarter EPS
• Discover Financial Services DFS: Moderate Buy with a $1.09 recent quarter EPS
• Euronet Worldwide EEFT: Moderate Buy with a $0.36 recent quarter EPS
• Fidelity National Information Services FIS: Hold with a $0.55 recent quarter EPS

MasterCard is in the financial transaction services industry, which has experienced price/earnings growth of 1.1%.

Finally, a description of the company's main areas of operation: Mastercard Incorporated is a multinational company, whose principal business is to process payments and to provide related services to financial institutions and other customers. Its main services are in support of the credit, debit, prepaid and related payment programs.

Take Action:

There is your peek into MasterCard's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap of the announcement. In the meantime, here are some links to explore today.

• To see up-to-date news on MasterCard, click here
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• To see other company earnings recaps, click here