shares were popping after the credit-card issuer reported better-than-expected earnings.
) posted adjusted earnings of $2.76 a share on $5.1 billion in adjusted net revenue, well above estimates calling for $2.18 in earnings per share and revenue of $4.91 billion.
Adjusted net income was $2.7 million, up 55% from the same period last year. Operating expenses increased 11% due to a 6-percentage point increase from acquisitions, and increased spending on advertising and personnel costs.
The uptick was driven by an increase in gross dollar volume and cross-border volume, with the former up 17% and the latter up 53% year over year as travel roars back.
“As of March, cross-border travel is above 2019 levels for the first time since the pandemic began, and ahead of our expectations,” said CEO Michael Miebach in a press release.
Looking toward the second quarter of 2022, Mastercard expects year-over-year revenue to grow at the high end of a high-teens rate excluding acquisitions, reflecting strong consumer spending and improvement in cross-border travel, management said in a call with analysts. The growth comes despite tailwinds related to Mastercard’s suspension of business in Russia after it invaded Ukraine. Russia accounted for roughly 4% of revenue in 2021, management said in the call.
“We’ve assumed that that 4% doesn’t exist in any of the quarters going forward from a net-revenue standpoint,” said Chief Financial Officer Sachin Mehra.
Foreign exchange is expected to be a tailwind of approximately three to four percentage points in the quarter.
Cross-border payments played a significant role in helping competitor Visa post an earnings beat for its second-quarter results, boosting the stock as much as 6% after it reported earnings on Tuesday.
Shares of Mastercard were up 5.4% to $381.12 on Thursday. The shares have gained 6% this year.
Mastercard repurchased 6.8 million shares for $2.4 billion and paid $479 million in dividends. As of March 31, the company had issued 2.9 billion Mastercard and Maestro-branded cards, the company said.
Write to Sabrina Escobar at [email protected]