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Valued at a market cap of $513.8 billion, Mastercard Incorporated (MA) is a technology company that provides transaction processing and other payment-related products and services. The Purchase, New York-based company offers an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities. It is scheduled to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 30.
Prior to this event, analysts project this payment processing giant to report a profit of $4.05 per share, up 12.8% from $3.59 per share in the year-ago quarter. The company has a solid trajectory of consistently surpassing Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $3.73 per share in the previous quarter topped the consensus estimates by 4.5%.
For the full year, analysts expect MA to report EPS of $15.99, up 9.5% from $14.60 in fiscal 2024. Its EPS is expected to further grow by 16.6% year-over-year to $18.65 in fiscal 2026.
Mastercard has rallied 30% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 11.5% uptick and the Financial Select Sector SPDR Fund’s (XLF) 25.8% return over the same time frame.
On May 1, shares of Mastercard closed down marginally after its Q1 earnings release, despite delivering a better-than-expected performance. Due to benefits from acquisitions and growth in its payment network and value-added services and solutions, the company’s overall revenue improved 14.2% year-over-year to $7.3 billion and topped the consensus estimates by 1.8%. Meanwhile, its adjusted EPS of $3.73 advanced 12.7% from the year-ago quarter, surpassing the Wall Street estimates by 4.5%.
Wall Street analysts are highly optimistic about MA’s stock, with a "Strong Buy" rating overall. Among 36 analysts covering the stock, 25 recommend "Strong Buy," four indicate "Moderate Buy," and seven suggest "Hold.” The mean price target for MA is $629.15, which indicates an 11.6% potential upside from the current levels.
