Mastercard

Mastercard   released Q1 2022 results, with adjusted earnings of $2.76 per share on $5.1 billion in   revenue. This was well above estimates of $2.18 in earnings per share and   revenue of $4.91 billion.

Adjusted net income was $2.7 million, up 55% from the same period   last year. Operating expenses increased 11% due to a 6-percentage point   increase from acquisitions, and increased spending on advertising and   personnel costs.

The strong performance was driven by an increase in gross dollar   volume and cross-border volume, with the former up 17% and the latter up 53%   on the back of a recovery in travel. Mastercard repurchased 6.8 million   shares for $2.4 billion and paid $479 million in dividends.

Looking toward Q2, Mastercard expects revenue to grow at the high   end of a high-teens rate excluding acquisitions, reflecting strong consumer   spending and improvement in cross-border travel, management said in a call   with analysts. The growth comes despite tailwinds related to Mastercard’s   suspension of business in Russia after it invaded which accounts for roughly   4% of revenues.

Mastercard is an outstanding business with operating margins in   excess of 50% and returns on invested capital above 25%. The business is one of   a few that should be protected from the current elevated inflationary   environment. Mastercard is held in portfolios as well as the Cratos BCI   Worldwide Flexible Fund.

Mastercard