Of the large caps, Mastercard (MA) has had some of the best performance through the recent selloff pre October.  Post Durbin amendment it appears Visa (V) and Mastercard (MA) have regained their status as hiding places for institutional money.  Oligarchies are sweet like that.

Following on the heels of the Visa report last week, Mastercard reported this morning and the market is very pleased as the stock has gapped up very nicely this morning.  The company earned $5.63 vs analysts' $4.82 - quite impressive.  Full report here.

Gross dollar volume of transactions grew 18.1% year over year, up from Q2's 16.4%. 

13.6% growth in U.S. dollar volume, 20.4% growth in international volume. 

Processed transactions rose 20.5%, up from Q2's 17.4%.

Via Bloomberg:

  • Net income climbed 38 percent to $717 million, or $5.63 a share, from $518 million, or $3.94, a year earlier, the Purchase, New York-based company said today in a statement. The average estimate of 29 analysts surveyed by Bloomberg was $4.82 a share.
  • Net revenue for the third quarter of 2011 was $1.8 billion, a 27.3% increase versus the same period in 2010. On a constant currency basis, net revenue increased 23.8%.
  • Chief Executive Officer Ajay Banga, 51, is pushing to wrest market share from larger rival Visa Inc. (V) amid new U.S. regulations on so-called swipe fees, or interchange, charged to merchants for debit-card purchases. The rules also give retailers more say on how those transactions are processed, or routed, which may erode Visa’s dominance.
  • “We still prefer MasterCard to Visa as we believe MasterCard has more to gain than lose from debit interchange regulation and will exhibit better growth characteristics over the next 12 months,” Tien-Tsin Huang, an analyst at JPMorgan Chase & Co., said in an Oct. 21 note to clients. He has an “overweight” rating on MasterCard. 
  • The company said it bought back $77 million worth of stock in the third quarter and has bought back another $3 million already in the current quarter, leaving $879 million left under its current program.

No position