MasterCard beats by $0.01, beats on revs; guides on call at 9:00
- Reports Q1 (Mar) earnings of $0.86 per share, $0.01 better than the Capital IQ Consensus of $0.85; revenues rose 9.7% year/year to $2.45 bln vs the $2.38 bln Capital IQ Consensus. On a currency-neutral basis, net revenue increased 14%.
- Net revenue growth was driven by the impact of the following: An increase in processed transactions of 14%, to 12.6 billion; A 13% increase in gross dollar volume, on a local currency basis, to $1.1 trillion; and An increase in cross-border volumes of 12%.
- These factors were partially offset by an increase in rebates and incentives, primarily due to new and renewed agreements and increased volumes.
- Worldwide purchase volume during the quarter was up 12% on a local currency basis versus the first quarter of 2015, to $838 billion. As of March 31, 2016, the company's customers had issued 2.3 billion MasterCard and Maestro-branded cards.
- Operating income for the first quarter of 2016 was flat, or up 4% on a currency-neutral basis, versus the year-ago period. The company delivered an operating margin of 55.1%.
- Updates FY16 guidance on call at 9:00