PURCHASE, N.Y. (AP) — MasterCard Inc.'s fourth-quarter earnings climbed 3 percent as rising payment volume countered a jump in expenses, but the results fell short of financial analysts' expectations.
That sent shares in the Purchase, N.Y., payment networks company down 5 percent in morning trading Friday.
MasterCard said net income grew to $623 million, or 52 cents per share, in the three months that ended Dec. 31. That compares with $605 million, or 49 cents per share, a year earlier.
Earnings in the most recent quarter totaled 57 cents per share, not counting a litigation-related charge.
Revenue climbed 12 percent to $2.13 billion, as consumers hit stores for holiday shopping.
Analysts anticipated adjusted earnings of 60 cents per share on $2.14 billion in revenue.
MasterCard said its revenue climbed partly because of a 13 percent increase in processed transactions to 10.4 billion and a 14 percent increase in gross dollar volume.
But that was partly offset by an increase in rebates and incentives that the company offered in conjunction with renewed deals signed during the quarter.
Operating expenses, which included a $95 million provision for a litigation settlement, rose 21 percent to $1.21 billion.