MasterCard (NYSE: MA) Earnings Fall Short After Visa (NYSE: V) Profit Tops Views

MasterCard Inc. (NYSE: MA) posted fourth quarter earnings on Thursday that fell short of Wall Street estimates.   The news comes just one day after rival Visa Inc. (NYSE: V) announced fiscal first quarter earnings that topped estimates by more than 10 cents a share.

For the fourth quarter, MasterCard posted earnings per share of $2.24, which excludes charge of 19 cents a share for severance costs.  Analysts were looking for the credit card firm to earn $2.46 a share in the period.

Despite the earnings miss, MasterCard remained upbeat as net revenue rose 6 percent to $1.3 billion in the fourth quarter compared to last year.  The firm also saw a 6.7 percent rise in the number of transactions to 5.9 billion.

 “In the fourth quarter, we saw encouraging signs with regard to key aspects of our business as cross-border volumes increased and processed transactions continued to grow. Overall, we are very pleased with our performance, and we look forward to building on that momentum as the global economic climate continues to improve,” said Robert W. Selander, MasterCard chief executive officer.

On Wednesday, rival Visa reported earnings of $1.02 a share for its fiscal first quarter, topping analyst estimates for 91 cents a share.  Visa and MasterCard’s latest quarter both ended on December 31, 2009.

“By all measures, Visa’s fiscal first quarter was a strong start to the new year, as we continued to execute well against our business plan,” said Joseph Saunders, Chairman and Chief Executive Officer, Visa Inc.

Visa reported an increase in revenue to $1.96 billion in the quarter, up from $1.74 billion in the year prior.  Visa also posted a strong 14 percent jump in the number of transactions during the period.

“We were able to capitalize on the secular trend to digital currency and grow revenues, as we expanded our payments network and processing capabilities to drive transaction growth through effective marketing programs, added Saunders.