Analyst’s Keeping an Eye on Mastercard Inc (NYSE:MA)

Analysts are weighing in on how Mastercard Inc (NYSE:MA), might perform in the near term. Wall Street analysts have a  assessment of the stock, with a mean rating of 2.0. The stock is rated as buy by 23 analysts, with 9 outperform and 6 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 32.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.90 a share, which would compare with $0.85 in the same quarter last year. They have a high estimate of $0.93 and a low estimate of $0.86. Revenue for the period is expected to total nearly $2.59B from $2.39B the year-ago period.

For the full year, 34.00 Wall Street analysts forecast this company would deliver earnings of 3.54 per share, with a high estimate of $3.65 and a low estimate of $3.45. It had reported earnings per share of $3.43 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $10.50B versus 9.67B in the preceding year.

The analysts project the company to maintain annual growth of around 15.92% percent over the next five years as compared to an average growth rate of 17.44% percent expected for its competitors in the same industry.

Among the 31 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for MA is $108.74 but some analysts are projecting the price to go as high as $122.00. If the optimistic analysts are correct, that represents a 26 percent upside potential from the recent closing price of $97.02. Some sell-side analysts, particularly the bearish ones, have called for $86.00 price targets on shares of Mastercard Inc (NYSE:MA).

In the last reported results, the company reported earnings of $0.85 per share, while analysts were calling for share earnings of $0.85. It was an earnings surprise of 0.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

MasterCard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as loyalty and reward programs, and information and consulting services. In addition, it provides cross-border and domestic processing services; and issuer and acquirer processing solutions, and payment and mobile gateways. Further, the company offers various payment products and solutions for cardholders, merchants, financial institutions, and governments; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. Additionally, it provides products and services to prevent, detect, and respond to fraud and ensure the safety of transactions. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. MasterCard Incorporated was founded in 1966 and is headquartered in Purchase, New York.