Earnings

MasterCard earnings: 86 cents per share, vs. expected EPS of 85 cents

Mastercard demonstrates the future of payments.
Brian Ach | Getty Images

MasterCard reported quarterly earnings that topped analysts' expectations by a penny a share on Tuesday, driven by higher spending by customers during the holiday shopping season.

The payment network posted fourth-quarter earnings per share of 86 cents on revenue of $2.76 billion.

Wall Street projected it would post earnings per share of 85 cents on $2.79 billion in revenue, according to Thomson Reuters consensus estimates.

MasterCard, which processes more than 65,000 transactions every minute, said its gross dollar volumes — the total value of transactions made by customers — rose 9 percent to $1.2 trillion on a local currency basis.

The United States, the company's largest market, accounted for a little under a third of total gross dollar volumes.

MasterCard, which deals in 150 currencies, said cross-border volumes — the value of transactions made by cardholders outside the home country of the card-issuer — increased 13 percent.

In December, MasterCard upped its quarterly dividend to 22 cents per share, a 16 percent increase from its previous dividend of 19 cents per share. The company also approved a $4 billion stock buyback program that would take effect after its previously announced repurchase program of the same magnitude.

MasterCard shares have been on a tear, surging 22 percent in the past year as of Monday's close. The stock hit an all-time intraday high of $111.07 on Jan. 25.

Earlier in January, American Express reported fourth-quarter earnings that missed analysts' expectations, but gave upbeat guidance for fiscal 2017.

Reuters contributed to this report.