Mastercard (NYSE:MA) Releases Earnings Results, Beats Expectations By $0.11 EPS

Mastercard (NYSE:MA) posted its quarterly earnings results on Thursday. The credit services provider reported $3.82 earnings per share for the quarter, topping analysts’ consensus estimates of $3.71 by $0.11, Zacks reports. Mastercard had a net margin of 45.26% and a return on equity of 178.27%.

Mastercard Price Performance

Shares of MA opened at $564.81 on Friday. The company has a market cap of $518.40 billion, a P/E ratio of 42.72, a PEG ratio of 2.17 and a beta of 1.10. Mastercard has a fifty-two week low of $428.86 and a fifty-two week high of $576.94. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36. The firm’s 50 day moving average price is $527.58 and its 200 day moving average price is $500.25.

Mastercard Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be given a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a dividend yield of 0.54%. The ex-dividend date is Friday, January 10th. This is a boost from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio is currently 23.00%.

Analyst Ratings Changes

A number of research analysts have weighed in on MA shares. UBS Group boosted their target price on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a report on Thursday, November 14th. Macquarie boosted their price objective on Mastercard from $505.00 to $565.00 and gave the stock an “outperform” rating in a research note on Friday, November 1st. Morgan Stanley upped their target price on Mastercard from $564.00 to $654.00 and gave the company an “overweight” rating in a report on Wednesday, December 18th. Barclays lifted their price target on Mastercard from $536.00 to $576.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Finally, Piper Sandler upped their price objective on shares of Mastercard from $575.00 to $591.00 and gave the company an “overweight” rating in a report on Friday, January 24th. Four investment analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $567.29.

Mastercard declared that its Board of Directors has authorized a share repurchase plan on Tuesday, December 17th that allows the company to repurchase $12.00 billion in shares. This repurchase authorization allows the credit services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.