Should You Buy Mastercard Before Q1 Earnings? Key Estimates to Note – April 29, 2025
From Zacks Investment Research: 2025-04-29 13:20:00
Mastercard is set to report first-quarter 2025 results on May 1, with earnings estimated at $7.57 per share and revenues at $7.13 billion. Estimates for the quarter indicate a 7.9% increase in earnings and a 12.3% growth in revenues year-over-year. For 2025, revenue estimates are $31.59 billion, up 12.2%, and earnings per share are $15.89, up 8.8%. Despite a history of surpassing earnings estimates, the current model does not predict an earnings beat for Mastercard this quarter due to an Earnings ESP of -0.05% and a Zacks Rank #3.
Factors shaping Mastercard’s Q1 results include an expected rise in Gross Dollar Volume, switched transactions, and cross-border volumes. Value-added Services and Solutions net revenues are anticipated to grow by 17%. While these factors position the company for growth, rising expenses and rebates may offset positives, making an earnings beat uncertain. Mastercard’s stock has performed well year-to-date, but its valuation is higher than the industry average. Investors may want to wait for a better valuation before adding to their position.
Read more at Zacks Investment Research: Should You Buy Mastercard Before Q1 Earnings? Key Estimates to Note – April 29, 2025