Master Card Inc’s third quarter profit rose by 15 percent far exceeding market expectations showing the increase in spending of consumers in the period.The company’s share also rose by 4.6%.As said,”The numbers were well ahead of expectations” and illustrated “a fundamental turn in their business,” said Jim Tierney, chief investment officer of W.P. Stewart, which owns MasterCard shares.
The company, which processes credit card transactions but does not lend directly to consumers, makes money every time someone buys something with a credit or debit card.
Chief Executive Ajay Banga, who took charge in July, attributed the good results to an increase in cross-border spending and strong spending growth outside the United States.
MasterCard has relatively few opportunities for growth in the United States, where rival Visa Inc dominates the debit processing market and most consumers already use credit and debit cards.
MasterCard, the world’s second-largest credit and debit processing network, earned $518 million, or $3.94 per share, in the third quarter, compared with $452 million, or $3.45 per share, a year earlier.
Analysts on average had expected $3.54 per share.
but,MasterCard shares rose $11.07 to $250.06 in pre market trading.