Erste Group Bank Predicts Higher Earnings for Mastercard

Key Points

• Erste Group Bank raised Mastercard’s FY2026 EPS estimate to $19.96 from $19.92, above the $19.86 consensus, and projects FY2027 EPS of $23.08.
• Mastercard’s latest quarter exceeded expectations, with EPS of $5.04 versus $4.77 expected and revenue of $9.28 billion versus $9.08 billion; revenue increased 14.1% year over year.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $664.71, compared with the stock’s reported opening price of $595.51.

Mastercard Incorporated (NYSE:MA - Free Report) - Research analysts at Erste Group Bank boosted their FY2026 earnings estimates for Mastercard in a research report issued to clients and investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now anticipates that the credit services provider will earn $19.96 per share for the year, up from their previous estimate of $19.92. The consensus estimate for Mastercard's current full-year earnings is $19.86 per share. Erste Group Bank also issued estimates for Mastercard's FY2027 earnings at $23.08 EPS.

Mastercard (NYSE:MA - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, topping analysts' consensus estimates of $4.77 by $0.27. The business had revenue of $9.28 billion for the quarter, compared to analysts' expectations of $9.08 billion. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The company's revenue for the quarter was up 14.1% compared to the same quarter last year. During the same quarter last year, the company earned $4.15 EPS.

A number of other equities research analysts have also recently weighed in on the company. UBS Group lifted their price target on Mastercard from $640.00 to $670.00 and gave the company a "buy" rating in a report on Friday, July 31st. Morgan Stanley raised their target price on Mastercard from $679.00 to $681.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Robert W. Baird lifted their target price on Mastercard from $660.00 to $680.00 and gave the company an "outperform" rating in a research note on Tuesday, July 7th. Truist Financial boosted their price target on Mastercard from $554.00 to $633.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Finally, KeyCorp increased their price target on Mastercard from $670.00 to $680.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Five analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $664.71.

Mastercard Price Performance

NYSE MA opened at $595.51 on Monday. The company has a 50-day moving average price of $549.15 and a two-hundred day moving average price of $519.51. Mastercard has a 52 week low of $464.52 and a 52 week high of $601.62. The stock has a market cap of $521.67 billion, a price-to-earnings ratio of 32.76, a price-to-earnings-growth ratio of 1.79 and a beta of 0.71. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 3.96.

Mastercard Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Thursday, July 9th were issued a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, July 9th. Mastercard's payout ratio is presently 19.14%.

Insider Transactions at Mastercard

In other news, CEO Michael Miebach sold 15,372 shares of Mastercard stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $575.00, for a total value of $8,838,900.00. Following the transaction, the chief executive officer owned 93,693 shares of the company's stock, valued at $53,873,475. The trade was a 14.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sandra A. Arkell sold 200 shares of the business's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $540.00, for a total transaction of $108,000.00. Following the completion of the sale, the insider owned 3,322 shares in the company, valued at $1,793,880. The trade was a 5.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 71,357 shares of company stock valued at $40,637,262 in the last quarter. 0.09% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. E Fund Management Hong Kong Co. Ltd. lifted its holdings in shares of Mastercard by 820.0% during the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 46 shares of the credit services provider's stock valued at $26,000 after purchasing an additional 41 shares during the last quarter. Strive Financial Group LLC acquired a new stake in Mastercard during the 4th quarter worth about $27,000. Hyposwiss Advisors SA acquired a new stake in Mastercard during the 4th quarter worth about $29,000. Robinswood Financial LLC purchased a new stake in Mastercard during the first quarter valued at about $25,000. Finally, Bay Harbor Wealth Management LLC boosted its holdings in shares of Mastercard by 54.1% in the fourth quarter. Bay Harbor Wealth Management LLC now owns 57 shares of the credit services provider's stock worth $33,000 after buying an additional 20 shares during the period. Institutional investors and hedge funds own 97.28% of the company's stock.

Mastercard News Summary

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Mastercard and QNB Group processed Syria’s first international card transaction in more than 15 years. The milestone marks the reopening and modernization of Syria’s international payments infrastructure following the lifting of certain U.S. restrictions. Although the near-term financial contribution is likely to be small, the development creates a potential new market and demonstrates Mastercard’s ability to support payments expansion. Syria marks first international card transaction in more than 15 years with Mastercard and QNB Group
• Positive Sentiment: Analysts have given Mastercard a consensus “Buy” rating. Continued Wall Street support adds to the bullish backdrop, though the rating itself may already be reflected in the share price. Mastercard Incorporated Given Consensus Rating of Buy by Analysts
• Positive Sentiment: Pershing Square founder Bill Ackman added Mastercard to the hedge fund’s portfolio. The purchase may improve investor sentiment by signaling confidence from a prominent long-term investor, although it does not change Mastercard’s operating outlook. Bill Ackman Just Made His Biggest Portfolio Overhaul in Years
• Positive Sentiment: A partnership with Klook targets growing travel and experiences spending across Asia Pacific. Mastercard cardholder benefits and additional travel-related payment touchpoints could support transaction volume in a high-growth region. Klook and Mastercard collaborate to enhance travelers’ experiences across Asia Pacific
• Neutral Sentiment: Mastercard will participate in the Goldman Sachs Communacopia + Technology Conference on September 10, where CFO Ling Hai is scheduled to speak. Investors may look for updates on growth, margins and capital allocation, but no new financial information was provided. Mastercard to Participate in Upcoming Investor Conference
• Neutral Sentiment: Mastercard’s name appears as a supporter of an XRPL/Ripple hackathon, but reports caution that the sponsorship does not represent a new cryptocurrency partnership or major product launch. Mastercard’s Name Is on the Ripple Hackathon, But Don’t Get Ahead of Yourself

Mastercard Company Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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