Currency Impact Drags Down Master Card’s Q1 Earnings But Fundamentals Still Strong
Master Card reported a 6% drop in earnings per share for the first quarter of fiscal year 2016. The company reported a close to 10% increase in revenue, but the impact of currency fluctuations dragged down its operating income by 5.5% compared to the previous year, as general and administrative expenses rose by 34% year-over-year. The impact of these costs filtered down into the pre-tax and net income as well, which declined by 5.5% and 5.9%, respectively. Despite these factors, the company’s reported fundamentals were strong, with cross-border volumes, processed transactions and and purchase volumes all registering double digit increases.
Note: Key account lines highlighter in red.
Have more questions about MasterCard? See the links below:
- How Much Did MasterCard’s Revenue & Gross Profit Grow In The Last Five Years?
- How Much Can MasterCard’s Revenue Grow In The Next Five Years?
- What Is MasterCard’s Fundamental Value Based On Expected 2016 Results?
- How Has MasterCard’s Revenue Composition Changed In The Last Five Years?
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