Mastercard Adjusts Full-Year Revenue Forecast Stock Down 1.16%

Mastercard Inc. ( MA ) has revised its outlook for full-year revenue growth downwards, citing foreign exchange challenges as a primary factor impacting its projections. The payments giant anticipates net revenue growth to now align with the lower end of low double digits for 2024, a shift from its previous guidance targeting growth at the higher end of this range.

Chief Financial Officer Sachin Mehra highlighted the impact of foreign exchange dynamics, particularly the recent strengthening of the US dollar, as a significant headwind affecting the company's revenue outlook. Despite this adjustment, the outlook for net revenue growth on a currency-neutral basis, excluding acquisitions, remains consistent with prior forecasts, aiming for growth at the high end of low double digits.

Although shares of the company had shown resilience, climbing 5.8% year-to-date, they experienced a dip OF 1.33% following the announcement, reflecting investor concerns over the revised revenue forecast. Total network spending volume for the first quarter fell short of estimates, coming in at $2.29 trillion, below the expected $2.32 trillion.

However, Mastercard's ( MA ) first-quarter adjusted earnings exceeded expectations, reaching $3.31 per share, surpassing the Bloomberg survey's average estimate of $3.23 per share. CEO Michael Miebach emphasized the company's positive momentum, driven by robust consumer spending, substantial cross-border volume growth, and successful deal wins across regions.

Mastercard's ( MA ) performance mirrors that of its competitor Visa Inc., which also beat earnings estimates in the first quarter, reporting strong spending growth. Meanwhile, American Express Co. witnessed an 11% revenue jump during the same period.

One notable development during the quarter was Mastercard ( MA ) and Visa's landmark antitrust settlement, which promises to cap credit card interchange fees and provide relief to merchants. This agreement, subject to court approval, is expected to yield significant savings for merchants over the coming years.