Mastercard exceeds earnings expectations as consumer spending rebound continues

The payments giant reported revenue of $5.22 billion, up from $4.12 billion a year earlier, while analysts tracked by FactSet were modeling $5.17 billion.

Mastercard saw gross dollar volume increase 23% on a local-currency basis relative to a year earlier, while cross-border volume rose 53%. The company disclosed that cross-border spending was back above pre-pandemic levels during the quarter.

The company noted in its earnings presentation that cross-border volume was up 47% from year-prior levels during the first three weeks of January.

Shares were off 2.3% in premarket trading Thursday.

Subscribe: Want intel on all the news moving markets? Sign up for our daily Need to Know newsletter.

The report comes after fellow financial-services company American Express Co. AXP, +0.06% delivered upbeat results earlier in the week and upped its long-term growth goals. Amex cited what it expects to be lasting behavioral changes coming out of the pandemic as consumers continue to show strong online spending patterns even as offline shopping has recovered.

Peer Visa Inc. V, +0.59% is due to report its own results after Thursday’s closing bell.

Mastercard shares have risen 2.7% over the past three months as the S&P 500 SPX, +0.94% has decreased 4.9%.