Mastercard Forecasts Slower Revenue, Expense Growth in 2020 -- Update
January 29 2020 - 2:10PM
Dow Jones News
By Allison Prang
Mastercard Inc. is expecting its adjusted revenue and operating
expenses to both rise at a slower pace in 2020.
The company affirmed it is expecting adjusted revenue in 2020 to
climb by a percentage in the low teens and said also it expects for
adjusted operating expenses to climb by a high single-digit
percentage. In 2019, adjusted revenue rose 16%, while adjusted
operating expenses rose 12%.
Mastercard's adjusted metrics adjust for items including
currency changes.
Mastercard's revenue guidance is on par with the three-year
guidance the company gave a year ago, calling for compound annual
revenue growth in a low-teens percentage from 2019 through
2021.
In the fourth-quarter, net income at the company jumped to $2.1
billion, or $2.07 a share. Profit more than doubled from a year ago
when Mastercard logged more than $750 million in litigation
charges. Adjusted earnings were $1.96 a share, up from $1.55 a
share.
Analysts had estimated earnings of $1.87 a share, according to
FactSet.
Mastercard also recorded a net gain on its equity investments of
$119 million in the fourth quarter.
Net revenue at the company was $4.41 billion, up 16%. Analysts
were expecting $4.4 billion.
The volume of Mastercard's card transactions was $1.73 trillion,
up 11%.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
January 29, 2020 13:55 ET (18:55 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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