MasterCard (MA 118.00, +1.63) has climbed 1.4% in pre-market after beating expectations for the first quarter.
The payment processor reported above-consensus earnings of $1.00 per share on an 11.8% year-over-year increase in revenue to $2.73 billion, which was also ahead of expectations.
Switched transactions increased 17.0% year-over-year to 14.70 billion. Gross dollar volume increased 8.0% to $1.81 trillion. Cross-border volumes grew 13.0%.
First quarter operating expenses jumped 11.0% on an adjusted basis due to investments in strategic initiatives and higher advertising & marketing spend.
MasterCard's effective tax rate declined to 26.9% from 28.3% one year ago. The decline was due to a more favorable geographic mix of taxable earnings and a minor benefit from discrete items.
Looking closer at operating performance, gross dollar volume increased in most geographic areas while gross dollar volume in Europe fell 2.3% to $312 billion. On the upside, gross dollar volume in Latin America increased 17.2% to $86 billion; Gross dollar volume in Canada increased 17.0% to $34 billion; and United States GDV grew 2.0% to $380 billion. Asia Pacific, Middle East, and Africa GDV grew 5.9% to $370 billion.
The company noted that it has room to repurchase up to $3.80 billion of its own stock under its current repurchase program.
MasterCard has enjoyed a steady run ever since its IPO in 2006. The stock hit an intraday record high of $117.37 on April 28, but is set to eclipse that level at today's opening bell.