Priceless: Mastercard Winning Deals With Its Differentiating Services

While Mastercard's stock price has soared this year, shares actually fell the day after Mastercard Inc (NYSE: MA) reported its second quarter earnings. Long-term investors know to concentrate on business fundamentals, though, and when viewed in that light, Mastercard's numbers showed strong growth. The company's fourth-quarter revenue grew to $3.05 billion, up 14% year over year, and non-GAAP EPS rose to $1.10, a 16% year over year increase.

Two other important metrics, gross dollar volume and switched transactions, also showed healthy growth. The gross dollar volume grew to $1.3 trillion, a 9% increase (once adjusted for EU regulatory changes), and switched transactions came in at 16 billion, a 17% year-over-year increase.

Mastercard had more good news to share besides its consistent growth in the company's most important metrics; the company also shared that it had won some important new deals as well. Every quarter, credit card rivals like Mastercard and Visa Inc (NYSE: V) share news of new deals struck and others renewed but, more important for Mastercard investors might be the reasons why this quarter's deals were made.

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Source: Fool.com