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Mastercard Q1 Results Top Estimates

Mastercard Inc. (MA) reported that its first-quarter net income declined to $1.69 billion or $1.68 per share from $1.86 billion or $1.80 per share in the same quarter last year.

"... Although there will be twists in the road, we have seen early signs of spending levels stabilizing and are confident that we will emerge from this even stronger." said Ajay Banga, Mastercard CEO.

Adjusted earnings per share for the first-quarter were $1.83 compared to $1.78 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.73 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew to $4.01 billion from $3.89 billion in the prior year. Analysts expected revenues of $3.97 billion. Net revenue increased 3%, or 5% on a currency-neutral basis. This included an approximately 1 percentage point increase due to acquisitions.

First-quarter gross dollar volume rose 8% as well as purchase volume also increased 8%.

Mastercard has temporarily suspended 2020 share repurchase activity, due to the continued uncertainty around the duration and severity related to the COVID-19 pandemic. The company has $6.9 billion remaining under current repurchase program authorizations.

In Wednesday pre-market trade, MA is trading at $271.70 up $7.10 or 2.68 percent.

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