MasterCards 4th quarter profit climbs 3 per cent but adjusted results miss

AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email FILE – In this Thursday, April 25, 2013, file photo, MasterCard credit cards are displayed for a photographer in Montpelier, Vt. MasterCard Inc. reports quarterly financial results before the market opens on Friday, Jan. 31, 2014. (AP Photo/Toby Talbot) MasterCard’s 4th quarter profit climbs 3 per cent, but adjusted results miss expectations PURCHASE, N.Y. – MasterCard Inc.’s fourth-quarter earnings climbed 3 per cent as rising payment volume countered a jump in expenses, but the results fell short of financial analysts’ expectations.That sent shares in the Purchase, N.Y., payment networks company down 5 per cent in morning trading Friday.MasterCard said net income grew to $623 million, or 52 cents per share, in the three months that ended Dec. 31. That compares with $605 million, or 49 cents per share, a year earlier.Earnings in the most recent quarter totalled 57 cents per share, not counting a litigation-related charge.Revenue climbed 12 per cent to $2.13 billion, as consumers hit stores for holiday shopping.Analysts anticipated adjusted earnings of 60 cents per share on $2.14 billion in revenue.MasterCard said its revenue climbed partly because of a 13 per cent increase in processed transactions to 10.4 billion and a 14 per cent increase in gross dollar volume.But that was partly offset by an increase in rebates and incentives that the company offered in conjunction with renewed deals signed during the quarter.Operating expenses, which included a $95 million provision for a litigation settlement, rose 21 per cent to $1.21 billion.Analysts were not anticipating the increase in operating expenses and rebates and incentives, which led to the disparity in the consensus earnings forecast and MasterCard’s results.Still, the growth in rebates and incentives is likely a positive for MasterCard’s longer-term growth prospects, Barclays analyst Darrin Peller wrote in a research note.MasterCard does business all over the world, and its results are a window into how people are spending at all different income levels.U.S. consumer spending grew during the October-December quarter at the fastest pace in three years.The Commerce Department Friday that consumer spending rose a solid 0.4 per cent in December after rising 0.6 per cent in November, the best gain in five months.MasterCard rival Visa Inc., along with card issuers American Express Co. and Discover Financial Services, reported higher card spending during the holiday season.Shares in MasterCard slid $3.97, or 5 per cent, to $75.79 in morning trading. The stock is down more than 9 per cent so far this year. by The Associated Press Posted Jan 31, 2014 6:38 am MDT read more

Full business investment rebound unlikely in advanced economies Bank of Canada

Full business investment rebound unlikely in advanced economies: Bank of Canada by The Canadian Press Posted May 11, 2017 9:45 am MDT Last Updated May 11, 2017 at 10:40 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email OTTAWA – A new Bank of Canada analysis says it has doubts business investment in advanced economies will accelerate back to its level before the 2007-09 global financial crisis.The discussion paper says it expects investment spending to see somewhat of a pickup from its lacklustre, post-2014 pace, which has been slowed by low commodity prices and heightened economic uncertainty.But even as current headwinds fade, the authors predict structural factors such as slowing population growth rates in advanced economies will keep business investment from returning to levels seen before financial crisis a decade ago.They write that commodity-producing economies enjoyed a brief investment-spending boom between 2010 and 2014 as the demand for resources rebounded and prices climbed.But since then, the paper says business-investment projections have been consistently over-optimistic and have become a leading source of error in the Bank of Canada’s output forecasts for the United States and Canada.Last month, the Bank of Canada pointed to the widespread uncertainty about the direction of U.S. trade policy as it downgraded its 2017 business-investment outlook. read more