MasterCard Earnings Preview: 15% Increase in EPS Expected (MA)

MasterCard MA is scheduled to report first-quarter 2011 results before Tuesday's opening bell. Analysts are looking for the company to post earnings of $4.10 per share. That is an increase from per-share earnings of $3.46 in the same period of last year. The consensus estimate for the most recent quarter has risen from $3.99 per share 90 days ago. First-quarter revenues are forecast to have risen as well: 11.5% year-over-year to $1.5 billion. This is for the three months in which MasterCard announced a joint venture with Telefonica TEF and also launched an ATM finder app for Android smart phones. Looking ahead, analysts thus far expect to see year-over-year growth of both earnings and revenue in the second quarter. MasterCard's earnings bested consensus forecasts in the past four reporting periods. Strong results in 2010 and the fourth quarter were attributed to strategic investments and the company's product offerings to cardholders, businesses and governments. MasterCard shares are trading at 19.6 times current 2011 earnings estimates; however, that is much less than the industry average. The long-term EPS growth forecast is 19.6%. MasterCard also has a PEG ratio of 0.8 and a nice 42.2% return on equity. The stock reached a 52-week high of $280.00 earlier today. It has performed better than competitors American Express AXP and Visa V, as well as the broader market, year-to-date.