Mastercard stock swung higher Wednesday and snapped a downtrend after the card giant cleared Q2 estimates with solid spending and volume growth.
Mastercard reported a 24% increase in adjusted earnings to $3.59 per share, while FactSet expected $3.51 per share. Net revenue rose 11% to $6.96 billion, beating views of $6.85 billion.
The results marked five straight quarters of double-digit earnings growth.
Mastercard's gross dollar volume increased 9% to $2.4 trillion, while purchase volume rose 10%. Cross-border volume jumped 17%, with 15% growth in intra-Europe volume. Switched transactions, which include authorization, clearing and settlement services, increased 11% for the quarter.
CEO Michael Miebach in the release noted "healthy consumer spending" and "robust cross-border volume growth" throughout the quarter.
Mastercard maintained its full-year revenue outlook of low double-digit growth. The company expects Q3 net revenue to also grow in the low double-digits.
The results come after Dow Jones rival Visa delivered a "rare top-line miss" for its Q3 results on July 23. A number of analysts lowered their price targets on Visa stock, noting slowing growth trends in July.
Mastercard Stock Performance
Mastercard stock jumped 3.6% Wednesday to push further above their 50-day moving average.
MA stock is trading low in a 19-week consolidation. The early move broke above the downtrend in that consolidation. Aggressive investors could use that break as a possible entry point.
Mastercard had gained 8.7% for the year.
Visa stock rose almost 1% Wednesday.
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