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The company said it expected revenue to rise in “low double digits” at the lower end of its forecasted growth range for the fourth quarter. Analysts on average were expecting a near 15% gain, according to IBES data from Refinitiv.
Shares of the Purchase, New York-based company were down more than 2% in premarket trading. The stock had fallen 11% so far this year, as of Wednesday’s close.
Last quarter, Mastercard warned of a slowdown in spending from lower-income customers in the United States in the face of red-hot inflation.
Investors have been closely watching out for any signs of a crack in consumers’ financial well-being, and are punishing the stocks of card issuers on the slightest indication of a perceived weakness.
Shares of American Express Co (NYSE:AXP) dropped as much as 7% last Friday despite solid third-quarter results, as the card lender set aside bigger provisions than expected, sparking fears of a surge in potential defaults going forward.
The stock has since recovered after strong results from peer Visa Inc (NYSE:V) and as expectations grew that the Federal Reserve may dial back its pace of interest rate hikes going forward.
Mastercard’s profit came in at $2.5 billion, or $2.58 per share, for the three months ended Sept. 30, compared with $2.4 billion, or $2.44 per share, a year earlier.
Excluding one-time costs, Mastercard earned $2.68 per share, beating Street estimate of $2.56 per share.
Reported revenue jumped 15% to $5.8 billion.
