Examining the Future: Mastercard's Earnings Outlook

Mastercard MA will release its quarterly earnings report on Thursday, 2025-05-01. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Mastercard to report an earnings per share (EPS) of $3.57.

Mastercard bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.13, leading to a 1.87% drop in the share price on the subsequent day.

Here's a look at Mastercard's past performance and the resulting price change:

Performance of Mastercard Shares

Shares of Mastercard were trading at $539.68 as of April 29. Over the last 52-week period, shares are up 20.53%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Mastercard

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Mastercard.

The consensus rating for Mastercard is Outperform, derived from 15 analyst ratings. An average one-year price target of $640.6 implies a potential 18.7% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Visa, Fiserv and PayPal Holdings, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Visa, with an average 1-year price target of $383.53, suggesting a potential 28.93% downside.
• Analysts currently favor an Outperform trajectory for Fiserv, with an average 1-year price target of $256.5, suggesting a potential 52.47% downside.
• Analysts currently favor an Neutral trajectory for PayPal Holdings, with an average 1-year price target of $84.61, suggesting a potential 84.32% downside.

Summary of Peers Analysis

The peer analysis summary outlines pivotal metrics for Visa, Fiserv and PayPal Holdings, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Mastercard ranks at the top for Revenue Growth and Gross Profit among its peers. It also leads in Return on Equity.

Unveiling the Story Behind Mastercard

Mastercard is the second-largest payment processor in the world, having processed close to $10 trillion in volume during 2024. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.

Mastercard's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Mastercard's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.37% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Mastercard's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 44.63% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Mastercard's ROE stands out, surpassing industry averages. With an impressive ROE of 48.0%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Mastercard's ROA excels beyond industry benchmarks, reaching 7.01%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.81, caution is advised due to increased financial risk.

To track all earnings releases for Mastercard visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.