Mastercard Declined 1.8 Percent In The First Quarter!

Despite the convincing results for the first quarter, Mastercard stock fell 1.8 percent!

Mastercard (NYSE: MA) posted its first quarter results last Thursday. Net income of the company was $ 4.16 billion, up 4 percent compared to the same period of the previous year. This was supported by gross dollar volume, which increased by 8 percent and purchasing volume that increased by 10 percent to double digits. However, Mastercard's adjusted net income fell 6 percent to $ 1.7 billion, or $ 1.74 per share, moving in the opposite direction. Both the headline and especially the bottom line results exceeded analyst estimates. On average, analysts who track the stock estimated that the company would report a net income of $ 3.99 billion and an adjusted net profit of just $ 1.57 per share. Like its rival Visa, Mastercard's encouraging growth somehow faced a notable decline in cross-border transactions. And it currently has a volume of 17 percent in local currency. Overall, the company has done a pretty good job of growing its business both organically and through acquisitions during tough times. Mastercard CEO Michael Miebach, said, “We started the year with a good momentum and achieved positive net income growth this quarter, while domestic spending levels are encouraged to return to pre-pandemic trends.” Despite this positive statement, the company did not make a guiding statement for the current quarter nor for the full year 2021.

Last Thursday, Mastercard fell 1.7 percent, in contrast to the 0.7 percent increase in the S&P 500 index.

It's really hard to understand what disappointed investors this quarter. Mastercard did a really good job compared to other blue chip companies during the peak of the pandemic. However, many people these days are eager to move away from companies that seem more ready to take advantage of the global economic recovery.

Source: https://www.fool.com/

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