Earnings Preview: Mastercard poised for double-digit EPS and revenue growth in Q3

* Mastercard (MA [https://seekingalpha.com/symbol/MA]) is scheduled to announce Q3 earnings results on Thursday, October 30th, before market open.
* The consensus EPS estimate is $4.31 [https://seekingalpha.com/symbol/MA/earnings/estimates] (+10.8% Y/Y), and the consensus revenue estimate is $8.53B (+15.7% Y/Y).
* Switched transaction volumes expected to rise between 7.2% and 9.3% year-over-year, driven by resilient consumer spending and increased contactless payment adoption.
* Gross dollar volume growth domestically and internationally, with U.S. volumes projected around $816 billion, and notable increases in Latin America and Europe.
* Cross-border transaction volumes forecasted to grow about 14-15%, benefiting from a resurgence in international travel.
* Robust growth in value-added services and solutions, such as consulting and loyalty programs, predicted at around 21.5% year-over-year.
* Operating expenses likely to increase by about 16%, with higher general & administrative and marketing costs, coupled with a 14% rise in payments network rebates and incentives.
* Over the last 2 years, MA has beaten EPS estimates [https://seekingalpha.com/symbol/MA/earnings/eps-surprise-summary] 100% of the time and has beaten revenue estimates 100% of the time.
* Over the last 3 months, EPS estimates have seen 23 upward revisions [https://seekingalpha.com/symbol/MA/earnings/revisions] and 0 downward. Revenue estimates have seen 20 upward revisions and 0 downward.
* Sell-side analysts maintain a Buy rating on Mastercard, while Seeking Alpha’s Quant Rating signals a more cautious Hold.
* SA contributor Cash Flow Venue highlights [https://seekingalpha.com/article/4833847-mastercard-stock-earnings-preview-operational-strength-premium-valuation] Mastercard as a leading dividend growth stock, noting its strong fundamentals, including double-digit revenue growth, exceptional profitability, and an EBITDA margin near 66%, outpacing Visa. Management continues to see resilient consumer spending trends, supporting further momentum. However, given the stock’s premium valuation, the author prefers to hold existing shares and wait for a more attractive entry point before adding.

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