Good News for Master Card (NYSE:MA) Investors This Week

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By Ross Schwartz on January 30, 2015 Company

The giant financial services corporation Master Card (NYSE:MA)had a tough time throughout 2014 especially during the company’s dealing abroad in Russia and elsewhere due to geopolitical scenarios. The currency valuation and devaluation was yet another factor in the company’s performance. However the company’s share ended with a high value at the end of the year and surprised everyone. The analysts forecast that the company is likely to give a very strong financial earnings report this week as well.

The expectations are that the company will have solid gains in revenues and profits. However, the company has a strong rival standing in its way, who is also not willing to step down without a fight. The company has yet to deal with a competitor like Visa as well. Visa on the other hand has had solid and strong financial performance and has given relatively higher earnings reports.The analysts estimate that the company had earnings per shares of $0.67 with a 17.5% change from the previous year.

The company’s Revenue estimates are around $2.39Billion with a 12.5% change from the previous year. Moreover the company managed to beat only 3% earnings in all its quarters. The company only managed to provide less earning last year. However the company’s stock still rose by a full 12%. More or less the company did earn some revenue but all those revenue gains came right after the company posted its third quarterly earnings report in late October.

The company then enjoyed about a 10% increase in its transactions with a revenue figure of 13%. Moreover the most stunning thing was the rapid increase in the earnings per share which rose by a full 19%. The EPS boosting was good, however the currency left a bad and a negative impact on the company. Another noticeable thing about the company was the difference between its foreign and domestic branches. The company’s foreign business went well and earned more as compared to its domestic business.

The company performed exceptionally well abroad despite the challenges it faced in Europe and elsewhere.The company also benefit from the occasional opportunities like the holidays seasons. Its sales dramatically rose in US through Christmas holidays starting from black Friday. The use of debit and credit card during these time periods gives the companies an opportunity to strive forward. The experts suggest that the improvement in economic conditions will benefit the company as its sales volume will further increase.

The other major problem occurred for the company recently was the US and Russia relations. It would have been a real disaster for the company if Master Card had not reached a deal with Russia. After the US sanctions on Russia, the Russian’s were almost about to impose a ban on the company, which however was avoided as the company made a deal with the Russian Government that all its monetary transactions will channel through the Russian Central bank. The benefits are mutual for both.