Mastercard Stock Is Rising. Earnings and Revenue Beat Expectations.

Mastercard posted second-quarter adjusted earnings and net revenue that beat expectations. (Dreamstime)

Mastercard stock got a boost Thursday after the credit-card company posted better-than-expected earnings and revenue in its second quarter.

Adjusted earnings per share of $4.15 topped the $4.03 analysts were anticipating, according by FactSet. Net revenue grew 17% from the previous year to $8.1 billion, beating the $7.93 billion consensus estimate.

Payment network net revenue increased 13% in the quarter, driven by a mix of increased gross-dollar volume, cross-border volume, and switched transactions.

CEO Michael Miebach cited the company’s recent “momentum of deal wins,” including the extension of Mastercard’s exclusive partnership with American Airlines Group. “We’re well positioned for the opportunities ahead and continue to drive new innovation,” Miebach said in the earnings release.

Mastercard’s latest earnings came on the heels of a similarly strong second-quarter print from Visa, which signaled that consumer spending remained in solid shape.

Mastercard’s Miebach affirmed this on the earnings call Thursday. “Consumer spending remains healthy, supported by low unemployment and wage growth that continues to outpace inflation,” the CEO said. “This is true across both affluent as well as mass market consumers.”

Miebach conceded that macroeconomic uncertainty lingers “due to government actions and geopolitical tensions overall.” However, management remains upbeat about Mastercard’s growth prospects and encouraged by continued strength in the fundamentals that support consumer spending.

Mastercard rose 3% to $575.71, while Visa stock was down slightly. The benchmark S&P 500 index was up 0.5%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com