Analysts Estimate Report : What to Look Out for Mastercard (NYSE:MA)

Earnings results for Mastercard (NYSE:MA)

Mastercard Incorporated is expected* to report earnings on 10/28/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 15 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.6400000000000001. The reported EPS for the same quarter last year was $2.15.

Mastercard last released its quarterly earnings data on July 30th, 2020. The credit services provider reported $1.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $0.21. The firm had revenue of $3.30 billion for the quarter, compared to the consensus estimate of $3.26 billion. Its revenue for the quarter was down 19.8% on a year-over-year basis. Mastercard has generated $7.77 earnings per share over the last year and currently has a price-to-earnings ratio of 43.9. Mastercard has confirmed that its next quarterly earnings report will be published on Wednesday, October 28th, 2020.

Analyst Opinion on Mastercard (NYSE:MA)

32 Wall Street analysts have issued ratings and price targets for Mastercard in the last 12 months. Their average twelve-month price target is $349.97, predicting that the stock has a possible upside of 10.36%. The high price target for MA is $415.00 and the low price target for MA is $280.00. There are currently 5 hold ratings and 27 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Mastercard has received a consensus rating of Buy. The company’s average rating score is 2.84, and is based on 27 buy ratings, 5 hold ratings, and no sell ratings. According to analysts’ consensus price target of $349.97, Mastercard has a forecasted upside of 10.4% from its current price of $317.11. Mastercard has been the subject of 15 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Mastercard (NYSE:MA)

Mastercard has a dividend yield of 0.50%, which is in the bottom 25% of all stocks that pay dividends. Mastercard does not have a long track record of dividend growth. The dividend payout ratio of Mastercard is 20.59%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Mastercard will have a dividend payout ratio of 18.89% next year. This indicates that Mastercard will be able to sustain or increase its dividend.

Insiders buying/selling: Mastercard (NYSE:MA)

In the past three months, Mastercard insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $71,292,644.00 in company stock. Only 3.79% of the stock of Mastercard is held by insiders. 73.72% of the stock of Mastercard is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Mastercard (NYSE:MA

Earnings for Mastercard are expected to grow by 28.14% in the coming year, from $6.61 to $8.47 per share. The P/E ratio of Mastercard is 43.86, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.17. The P/E ratio of Mastercard is 43.86, which means that it is trading at a more expensive P/E ratio than the Business Services sector average P/E ratio of about 39.62. Mastercard has a PEG Ratio of 2.77. PEG Ratios above 1 indicate that a company could be overvalued. Mastercard has a P/B Ratio of 53.93. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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