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During the final quarter of last year, Mastercard (MA.US) exceeded forecasts, recording a 20% growth in adjusted earnings per share, reaching $3.18, while revenue also experienced a boost of 12.5%, amounting to $6.55 billion. This solid growth for the company is a repetition of the previous quarter. The consistent consumer spending, robust cross-border volumes, a wider payments network, and supplementary services have all contributed to Mastercard’s success. Nonetheless, operational costs somewhat reduced the positive turn.
(Mastercard 4Q23 Earnings)
For 2023, Mastercard reported a healthy profit of $11.2 billion which translates to an earnings per share of $11.83. Their yearly revenue ascended to a whopping $25.1 billion.
Looking forward, Mastercard predicts the net revenue growth for the first quarter of 2024 to reach low double digits, and projects a marginal growth in operating expenses from the year before. For the entire 2024, management expects low double-digit expansion in net revenue from its $25.1 billion mark in 2023. The company expects a moderate single-digit increase in operating costs above the $11.1 billion of 2023. The optimistic forecast mirrors Mastercard’s positive trajectory, undeterred by potential macroeconomic challenges.
(Mastercard Stock Performance Six-month Chart)
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