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MasterCard Q3 Profit Rises, Beating View (MA)
November 3rd, 2009
Credit card issuer MasterCard Incorporated (MA
) on Tuesday said that its third quarter profit rose significantly from last year, beating analyst estimates.
The Purchase, New York-based company reported third quarter net income of $452 million, or $3.45 per share, compared with a net loss of $194 million, or $1.48 per share, in the year-ago period. Excluding one-time items, adjusted profit was $3.48 per share.
Revenue rose 2% from last year, to $1.4 billion.
On average, Wall Street analysts expected a much lower profit of $2.94 per share, on smaller revenue of $1.35 billion.
U.S. card volumes declined once again in the quarter, however, and CEO Robert Selander said that “We don’t expect any global economic improvement until sometime in 2010.”
MasterCard shares fell $7.37, or -3.2%, in morning trading Tuesday.
The Bottom Line
We recently removed shares of MA from our “recommended” list back on Sept.30, when the stock was trading at $206.74. The company has a dividend yield of .27%, based on last night’s closing stock price of $ 222.65. The stock has near-term technical support in the $195-$200 price area. If the shares can rebound, we see near-term overhead resistance around the $225-$232 price levels. We would remain on the sidelines for now.
MasterCard Incorporated (MA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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November 13th, 2009 at 4:04 pm
[...] Inc. (MA) recorded a third-quarter profit after it aggressively trimmed marketing expenses and raised fees to banks. The credit card network [...]