MasterCard-KeyBank Ink Payment Deal - Analyst Blog
02 Febbraio 2012 - 6:52PM
Zacks
Yesterday, MasterCard Inc. (MA) announced a
long-term agreement with KeyBank, a bank-based financial services
company, so as to provide debit card, ATM and prepaid card payment
processing services.
Consequently, KeyBank will use MasterCard’s Integrated
Processing Solutions (IPS) for payment processing under its Debit
MasterCard program. The company will use the service for online,
ATM as well as in-store transactions by its clients. Additionally,
KeyBank will now be able to provide PIN transactions to its debit
card users along with the current signature purchases and ATM
transactions.
MasterCard’s IPS is a top-notch, highly secure payment solution,
which will provide KeyBank with the flexibility to create
innovative and specialized products and services to meet its
clientele’s needs. KeyBank has been using MasterCard’s payment
solutions since 1997. It offers various MasterCard-branded cards,
such as Rewards Debit MasterCard, KeyBank Gold Debit MasterCard and
World Debit MasterCard.
Recently, MasterCard has been implementing IPS across its card
portfolio in order to eliminate the inefficiencies, which are
inherent in disparate processing platforms. During the third
quarter of 2011, MasterCard announced that the U.S. Huntington Bank
will convert its MasterCard debit cards and implement the company’s
IPS platform.
Earnings Review
MasterCard’s third-quarter 2011 operating earnings of $5.63 per
share came in significantly ahead of the Zacks Consensus Estimate
of $4.81 and $3.94 per share earned in the year-ago quarter.
Moreover, net income for the reported quarter stood at $717
million, spiking 38.4% from $518 million in the prior-year
quarter.
The Zacks Consensus Estimate for MasterCard’s fourth-quarter
2011 earnings is pegged at $3.90 per share, representing an
annualized growth of 23% over the prior-year period. Ten out of 27
analysts reduced their earnings estimates in the past 30 days,
while only one upward revision was witnessed.
For 2011, the company’s earnings are expected to be $18.57 per
share, growing about 32% from 2010. Additionally, MasterCard’s 2012
earnings are expected to be about $21.50 per share, up16% year over
year.
MasterCard is slated to release its financial results for both
the fourth quarter and full year 2011 before the market opens on
February 2, 2012. The company competes with Visa
Inc. (V), American Express Co. (AXP) and
Discover Financial Services (DFS).
Currently, the shares of MasterCard have a Zacks #3 Rank,
implying a short-term Hold rating. Furthermore, based on the
fundamentals we maintain our long-term Neutral recommendation on
the stock.
AMER EXPRESS CO (AXP): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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