Mastercard Inc topped quarterly profit estimates on Wednesday and raised its full-year revenue forecast, as it gained from higher consumer spending on credit and debit cards globally. The company's total gross dollar volume rose more than 19 percent to about $1.42 trillion in the first quarter, of which about 30 percent were transactions processed in the United States.
US consumer spending got a boost from rising wages, which hit their highest levels in 11 years, as companies passed on gains from tax cuts to their employees and job market improved. Bigger rival Visa also posted a quarterly profit well above analysts' estimates last week. Both Mastercard and Visa continued to reap the benefits of consumers using their cards for offshore spending. Mastercard's cross-border volumes, or transactions made by overseas cardholders, rose 31.8 percent in the quarter when converted to dollars.
The Purchase, New York-based company also raised its 2018 growth forecast for adjusted net revenue to high-teens from mid-teens and adjusted operating expenses to mid-teens from low-double digits. Net income rose to $1.49 billion, or $1.41 per share, in the latest quarter ended March 31 from $1.08 billion, or $1 per share, a year earlier.
Excluding items, the company earned $1.50 per share, topping analysts' estimates of $1.25 per share, according to Thomson Reuters I/B/E/S. Operating expenses rose 43 percent to $1.76 billion, partly from investments in the company's developmental programs. Net revenue rose 31 percent to $3.58 billion.