MasterCard revenue misses as consumers rein in spending

PURCHASE, N.Y., Wed Aug 1, 2012 – MasterCard Inc.’s quarterly revenue missed Wall Street estimates as worldwide purchase volume growth slowed to its lowest level in five quarters, sending the credit and debit card network’s shares down 3 percent before the bell.
Net income rose to $700 million, or $5.55 per share, from $608 million, or $4.76 per share, a year earlier.
Revenue rose 9 percent to $1.82 billion. On a constant currency basis, revenue rose 13 percent.
The card network also took a pre-tax charge of $20 million, related to its share of the settlement in the ‘swipe fee’ lawsuit.
Excluding the charge, the company earned $5.65 per share.
Analysts on average had expected a profit of $5.58 per share, excluding items, on revenue of $1.87 billion according to Thomson Reuters I/B/E/S.
MasterCard, along with rival Visa Inc. and banks that issue their credit cards, agreed to a $7.25 billion settlement with U.S. retailers in a lawsuit over the fixing of debit and credit card fees.
MasterCard had already set aside $770 million to cover most of its $790 million liability.