Upcoming AWS Coverage on LendingClub Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 10, 2017 / Active Wall St. announces its post-earnings coverage on Mastercard Inc. (NYSE: MA). The Company posted its fourth quarter and fiscal year 2016 results on January 31, 2017. The world's second-largest payments processor surpassed markets earnings expectations. Register with us now for your free membership at:

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One of Mastercard's competitors within the Credit Services space, LendingClub Corp. (NYSE: LC), announced on January 18, 2017, that it will issue its earnings release for Q4 ended December 31, 2016, on Tuesday, February 14, 2017, after market hours. Lending Club will host a conference call to discuss Q4 financial results at 5:00 p.m. ET on the same day. AWS will be initiating a research report on LendingClub in the coming days.

Today, AWS is promoting its earnings coverage on MA; touching on LC. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended December 31, 2016, Mastercard's net revenue was $2.76 billion, an increase of 9% versus revenue of $2.52 billion in Q4 2015. Analysts expected $2.79 billion in revenue. The Company's net revenue growth was driven by an increase in switched transactions of 17% to 15.2 billion; a 9% increase in gross dollar volume (GDV) on a local currency basis and adjusting for the impact of recent EU regulatory changes to $1.2 trillion; and an increase in cross-border volumes of 13%. These factors were partially offset by a 21% increase in rebates and incentives, reflecting higher volumes and increased incentives for new and renewed deals. The Company's net revenue for FY16 was $10.8 billion, an increase of 11% versus the same period in 2015.

For Q4 2016, Mastercard reported net income of $933 million, up 5% and earnings per diluted share of $0.86, up 9%, both on a y-o-y basis. Excluding a special item in the reported quarter related to merchant litigation in the UK, the Company reported net income of $940 million, up 6%, and earnings per diluted share of $0.86, up 9%, versus the same period in 2015. These results surpassed Wall Street's forecasts of $0.85 per share. For FY16, Mastercard reported net income of $4.1 billion, or $3.69 per diluted share, up 10% versus the year ago comparable period. Excluding special items, net income was $4.1 billion, up 6%, and earnings per diluted share were $3.77, up 10% compared to the same period in 2015.

Card Details

Mastercard noted that as a result of the government's initiatives in India, ATM cash withdrawals in the short-term declined; however, purchase volumes in India were up significantly, 75% y-o-y. US GDV grew 3%, made up of credit and debit growth of 4% and 1%, respectively. Outside of the US, volume growth was 11%. Cross-border volume grew 13% on a local currency basis, up 1 PPT from the 12% in Q3 2016.

Switched transactions grew 17% globally to $15.2 billion, with double-digit growth in all regions other than the US. As of December 31, 2016, the Company's customers had issued 2.3 billion MasterCard and Maestro-branded cards.

Operating Metrics

For Q4 2016, Mastercard's total operating expenses decreased 1% to $1.4 compared to Q4 2015. The Company's operating income for the reported quarter increased 23% versus the year ago same period. Excluding the special item, operating income increased 24%. The Company delivered an operating margin of 49.4%, or 49.8% excluding the special item for Q4 2016. Operating income for FY16 was $5.8 billion, an increase of 13% versus the same period in 2015. Excluding special items, operating income was $5.9 billion, an increase of 13%. The Company delivered an operating margin of 53.5%, or 54.5% excluding special items.

Mastercard reported other expense of $52 million in Q4 2016 versus $82 million in Q4 2015. The decrease was mainly due to lower impairment charges on investments in the current quarter versus the comparable period in the prior year, which was partially offset by increased interest expense related to the Company's recent debt offerings. Mastercard's effective tax rate was 28.8% in Q4 2016 versus a rate of 13.1% in the comparable period in 2015. The difference was primarily due to the recognition of discrete benefits in Q4 2015.

Dividend & Stakeholder Meeting

On February 07, 2017, Mastercard announced that its Board of Directors has declared a quarterly cash dividend of $0.22 per share. The cash dividend will be paid on May 09, 2017 to holders of record of its Class A common stock and Class B common stock as of April 07, 2017. Additionally, the Company announced that its annual meeting of stockholders will take place at its corporate headquarters on June 27, 2017 at 8:30 a.m. ET. Stockholders of records as of the close of business on April 27, 2017 will be entitled to attend and vote.

Stock Performance

On February 09, 2017, Mastercard's share price finished the trading session at $107.30, slightly advancing 0.54%. A total volume of 2.68 million shares exchanged hands. The stock has rallied 11.88% and 29.85% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 4.14%. The stock is trading at a PE ratio of 29.09 and has a dividend yield of 0.82%.

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SOURCE: Active Wall Street