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Mastercard Says Despite Anemic U.S. Recovery, Global Growth Improving

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Despite reporting good results, and indicating global growth is improving, the stock has been a bit of a battleground this morning. Why?

In short, the outlook for the remainder of the year is one of more moderate top line growth due to the "uncertain" pace of the U.S. economic recovery. Add to that a continued lack of clarity on the regulatory front and you have the recipe for an intraday battle.

According to Chief Executive & Operating Officer Ajaypal Banga, the company's consumer spending data is mixed.
"On the one hand, fine dining, luxury retail and furniture spending has been down in recent months," he said on the call. "On the other hand, hotel and airline spending is up."

Of course, for Mastercard (MA), global growth accounts for 55% of the company's revenues, up from 50% just a couple of years ago. As well, as of recent quarters, volume growth outside the U.S. has outpaced growth in the U.S. rather handily, especially in the Asia-Pacific and Latin America regions.
POSITION:  No positions in stocks mentioned.