Earnings Update: Mastercard Incorporated (NYSE:MA) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a good week for Mastercard Incorporated (NYSE:MA) shareholders, because the company has just released its latest annual results, and the shares gained 5.1% to US$461. Mastercard reported in line with analyst predictions, delivering revenues of US$25b and statutory earnings per share of US$11.83, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Mastercard

After the latest results, the 32 analysts covering Mastercard are now predicting revenues of US$28.1b in 2024. If met, this would reflect a notable 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 19% to US$14.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$28.1b and earnings per share (EPS) of US$14.09 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$492. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Mastercard analyst has a price target of US$536 per share, while the most pessimistic values it at US$412. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. So it's pretty clear that Mastercard is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$492, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mastercard going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Mastercard that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.