Unpacking Q3 Earnings: Mastercard (NYSE:MA) In The Context Of Other Credit Card Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the credit card stocks, including Mastercard (NYSE:MA) and its peers.

Credit card companies facilitate electronic payments and extend revolving credit to consumers. Growth comes from increasing digital payment adoption, cross-border transaction growth, and value-added services for cardholders and merchants. Challenges include regulatory scrutiny of fees and practices, competition from alternative payment methods, and potential credit losses during economic downturns.

The 6 credit card stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4%.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Mastercard (NYSE:MA)

Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE:MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.

Mastercard reported revenues of $8.60 billion, up 16.7% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ transaction volumes estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $556.56.

Is now the time to buy Mastercard? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Capital One (NYSE:COF)

Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE:COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.

Capital One reported revenues of $15.36 billion, up 53.4% year on year, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest margin estimates.

Capital One scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $217.55.

Is now the time to buy Capital One? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Visa (NYSE:V)

Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE:V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.

Visa reported revenues of $10.72 billion, up 11.5% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a mixed quarter because it struggled in other parts of the business.

As expected, the stock is down 2.6% since the results and currently trades at $337.98.

Read our full analysis of Visa’s results here.

Bread Financial (NYSE:BFH)

Formerly known as Alliance Data Systems until its 2022 rebranding, Bread Financial (NYSE:BFH) provides credit cards, installment loans, and savings products to consumers while powering branded payment solutions for retailers and merchants.

Bread Financial reported revenues of $971 million, down 1.2% year on year. This result met analysts’ expectations. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest margin estimates.

Bread Financial had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 5.4% since reporting and currently trades at $63.86.

Read our full, actionable report on Bread Financial here, it’s free for active Edge members.

Synchrony Financial (NYSE:SYF)

Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.

Synchrony Financial reported revenues of $3.82 billion, flat year on year. This number beat analysts’ expectations by 0.9%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest margin estimates.

The stock is up 2% since reporting and currently trades at $74.25.

Read our full, actionable report on Synchrony Financial here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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