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Chris Brendler of Stifel Nicolaus weighs in on MasterCard earnings and what to expect from Visa.
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We'll Mastercard's.
First quarter earnings beat the street this morning because of the highest quarterly growth since their 2006 IPO.
Will rival Visa see similar success -- airports after the velvet able joining me now from Baltimore with his -- Chris -- Laura Stifel Nicolaus Chris what do you think I mean.
We had quite -- earnings report frankly coming out -- master -- for the stock went up lower what happened.
Five these so a lot of high expectations in the quarter MasterCard really -- of a fantastic run.
To start the year and has continued to hit new highs almost everyday it seems like so I think it was as high expectations in the corner lots of momentum behind their business and the -- -- recovered quite nicely this afternoon.
Yeah Chris that was a small revenue miss from your estimates for any they'd beat the street on revenue but your actual estimates that missed by a little bit of that concern you -- -- -- -- -- around the conference call this morning.
Yeah as I think I was a little -- on the street men actually didn't -- quite and we on the cross border side where they missed was on rebates incentives.
They have volume basis sense -- they give back to some of their acquired merchant partners to help spur volume and and given the strong buy and are seeing across the world.
Not surprising to see every -- line.
But I was it this is a halt hi that I thought would be.
Acted as expected to continue for now.
Your price target is 505 that's about the ten dollars higher generally where the stock is right now his -- opened up this morning this this and some back and forth on the -- so.
This price target do you think that you might have.
A lower that price -- going forward if we don't get the same type of revenue builds in the next couple of quarters.
-- I'll see that is that the outlook I think actually outlook for for MasterCard.
Is -- is higher mean the revenue growth of transaction growth they're seeing.
Is tremendous the valuations today only 1617 times -- and for next year.
These guys are growing earnings at 20% plus almost every single year year in year out even to the recession.
I think continue the next decade -- most secular growth in payments so.
I think it anything -- of the upper pressure on on earnings and the target price of -- -- years.
I'll OK all right on every -- with a target price of an edited it Chris before I let -- go are right.
Visa to come out after the bell today do you think that MasterCard took a little bit of a bite out of -- business for the quarter.
-- hi -- actually it looks like we're seeing a greater than -- -- impact.
On pin debit when you type in your pin number at the point of sale historically -- says actually dominated that business -- 2% market share in the US.
A MasterCard reported this morning that there have been volume has gone -- -- gone from 7% to 20% in the last couple weeks because of the Durbin amendment on interchange and and how they have exclusivity provisions on pin -- so MasterCard gaining share entries is expands its low margin business -- -- have a huge impact but it where it will show up.
Our Chris I have a little more understanding now cross border fees thanks -- you -- radler.
Thank you very much for the commentary on MasterCard remember everybody after the bell today -- in eastern time -- claim the national Webster.
I get a review the results from Visa as they are released along with many other big name companies that -- be reporting after the bell do not.
Mrs.
Dennis.
