What are Mastercard's key financial performance objectives for 2011-2013?

Mastercard aims for a net revenue compound annual growth rate (CAGR) of 12-14% on a constant currency basis, an annual operating margin of at least 50%, and an earnings per share (EPS) CAGR growth exceeding 20%.

What is the significance of the $1 billion share repurchase program?

The $1 billion share repurchase program, approved by the Board of Directors, indicates management's belief that the company's stock is undervalued and their commitment to returning capital to shareholders, which can also boost earnings per share.

What is the context for these announcements?

These announcements were made in conjunction with a meeting hosted by Mastercard for members of the investment community on September 15, 2010. The company provided these longer-term performance objectives and details about the share repurchase program during this event.

Are these financial targets guaranteed?

The reported financial objectives are forward-looking statements based on the company's expectations and are subject to various risks and uncertainties. They represent management's targets and are not guarantees of future results. The filing also notes that the information is furnished and not filed, and performance is on a constant currency basis.

MA 8-K: Regulation FD — Sep 15, 2010

Summary

Mastercard Incorporated (MA) filed an 8-K on September 15, 2010, announcing key strategic financial objectives and a significant share repurchase program. The company outlined its longer-term performance targets for 2011-2013, projecting a compound annual growth rate (CAGR) for net revenue of 12-14% on a constant currency basis. Furthermore, Mastercard anticipates an annual operating margin of at least 50% and an EPS CAGR growth exceeding 20% during this period. These objectives signal strong confidence in the company's future growth prospects and operational efficiency.

Key Highlights

1Mastercard is targeting a net revenue CAGR of 12-14% on a constant currency basis for 2011-2013.
2The company expects an annual operating margin of a minimum of 50% for the 2011-2013 period.
3Mastercard projects an EPS CAGR growth of over 20% for the 2011-2013 period.
4The Board of Directors has approved a share repurchase program authorizing up to $1 billion of Class A common stock.
5The share repurchase program demonstrates management's confidence in the company's valuation and commitment to shareholder returns.
6These forward-looking statements were presented at an investor meeting on September 15, 2010.
7Presentation materials and a press release detailing the share repurchase were attached as exhibits.

Mastercard Inc 8-K Report, Regulation FD Disclosure (Sep 15, 2010)

Summary

Key Highlights

Frequently Asked Questions