Summary
Mastercard Incorporated (MA) filed an 8-K on September 20, 2012, to disclose longer-term performance objectives for the years 2013-2015. The company outlined ambitious growth targets, including a net revenue compound annual growth rate (CAGR) of 11-14% and an earnings per share (EPS) CAGR of at least 20%, both on a constant currency basis and excluding future acquisitions. Furthermore, Mastercard anticipates maintaining an annual operating margin of a minimum of 50% during this period.
Key Highlights
- 1Mastercard is targeting a net revenue CAGR of 11-14% for 2013-2015 (constant currency, excluding acquisitions).
- 2The company aims for an EPS CAGR of at least 20% over the same 2013-2015 period (constant currency, excluding acquisitions).
- 3Mastercard expects to achieve an annual operating margin of at least 50% from 2013 to 2015.
- 4These targets were presented during a meeting with the investment community on September 20, 2012.
- 5The company acknowledged the current weak global economic environment and potential impacts on revenue growth, particularly in the early part of the 2013-2015 period.
- 6Management's expectations are based on the assumption of no further significant deterioration in the U.S. economy or the Eurozone.