NEW YORK (AP) — Payment processing company MasterCard Inc. said its adjusted third-quarter profit rose slightly from a year ago, as the company saw solid growth in activity worldwide on its payment network.
MasterCard said Thursday it had net income of $1.03 billion, excluding a one-time $50 million charge tied to the termination of the company's pension plan. That is up from $1.02 billion in the same period a year ago. Per-share earnings, excluding that one-time charge, amounted to 91 cents per share compared with 87 cents a share a year earlier.
The results surpassed Wall Street expectations, with analysts surveyed by Zacks Investment Research looking for earnings of 88 cents per share.
Payment volume on MasterCard's network, a key measure of the company's business, was up 12.3 percent to $852 billion in the quarter on a local currency basis. United States payment volume was $311 billion, up 8 percent from a year earlier. MasterCard, like its major competitor Visa, earns money by taking a small percent of each transaction done on its network as a fee.
"We continue to see double-digit growth in both volume and transactions in most of our regions around the world," said Ajay Banga, MasterCard's president and CEO, in a prepared statement.
Total revenue in the quarter was $2.53 billion, up slightly from $2.49 billion a year earlier. Its revenue missed Street forecasts, however. Fourteen analysts surveyed by Zacks expected $2.54 billion.
MasterCard shares rose $1.16 to $101.25 in midday trading. Its shares have risen 16 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed 1.5 percent. The stock has climbed 32 percent in the last 12 months.
This story was partially generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MA at http://www.zacks.com/ap/MA
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