Why Mastercard Plummeted by Over 8% on Wednesday
Mastercard (NYSE: MA) didn't look particularly masterful in its latest quarterly results. The company unveiled its third quarter of fiscal 2020 numbers on Wednesday morning, with the headline figures coming in under analyst estimates. Investors promptly traded down the stock, which sank by more than 8% on the day.
Everyone expected Mastercard to post declines in revenue and profitability; there's a global pandemic raging, after all, and economies are constricted because of it.
The company's revenue fell by 14% on a year-over-year basis to $3.84 billion, some distance down from the average analyst projection of $3.94 billion. Non-GAAP (adjusted) net income fell more precipitously, tumbling 27% to land at $1.6 billion, or $1.60 per share. Prognosticators were collectively modeling $1.64 for the latter.
Source Fool.com
