External factors in favor of Mastercard, analysts optimistic on Q2 results

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Mastercard (NYSE: MA) is expected to announce second-quarter results on Thursday, July 28, before the market opens.

For the second quarter, the EPS consensus estimate is $2.36 (+21.0% YoY) and the revenue consensus estimate is $5.26B (+16.9% YoY). year).

Over the past 2 years, MA has beaten EPS and revenue estimates 88% of the time.

Over the past 3 months, EPS estimates have seen 9 upward revisions and 14 downward revisions. Revenue estimates saw 9 upward revisions and 12 downward revisions.

The payments company is expected to show profit growth in the second quarter. The company’s growth plans are forward-looking and able to capitalize on its advantages as a market leader, said Alpha Compounder, author of Seeking Alpha.

Here is an overview of MA’s growth trends over the past few years.

According to Credit Suisse analyst Timothy Chiodo, large-cap payment stocks such as Mastercard and Visa have balanced exposures, a recession-proof growth algorithm and an ability to cut discretionary marketing spend.

Visa’s fiscal Q3 earnings beat Wall Street expectations as cardholders started traveling again and brought their credit and debit cards with them.

The economic outlook is unclear, but we remain confident in our ability to execute with discipline and expand Visa’s role at the center of currency movements, said Visa CEO Alfred F. Kelly, Jr.

Additionally, non-automotive retail consumer spending in June was up 9.5% from a year ago, according to the Mastercard SpendingPulse, which measures in-store and online retail sales for all modes of payment. payment.

With external factors in favor of the company, optimism prevails over Q2 results.

Shirlene J. Manley