Mastercard (MA US, BUY) 3Q23 adj. EPS beat consensus, while management cut 4Q forecast
- Mastercard posted 3Q23 results, adj. diluted EPS of $3.39, beat market consensus of $3.21
- Key business drivers continued to record growth on all fronts
- Mastercard cut 4Q net profit growth to low double-digits, falling short of market expectations
3Q23 adj. EPS of $3.39 beat market expectations of $3.21. 3Q23 net revenue grew by 14% to $6.5b or 11% on a currency-neutral basis, in line with market expectations, the net revenue growth was buoyed by strength in payment network on the back of the resilient consumer spending and continued recovery of cross-border travel and value-added services and solutions. Key business drivers continued to record growth on all fronts: gross dollar volume (GDV) grew 11%, cross-border volume increased 21% globally, and switched transactions was higher by 15%.
While consumer spending for the month of October was decelerating, which has signaled a potential moderation in spending volumes due to the uncertain economic environment. Management hence guided a low double-digit growth forecast for 4Q net profit, falling short of consensus estimates of 16% y-o-y. Based on resilient growth levers and diversified business products, we maintain BUY with unchanged TP.