MasterCard profit and sales top estimates

MasterCard stock rose on Thursday after the credit and debit card payment processor posted stronger results than analysts expected.

MasterCard said its net income edged up to US$983 million, or 89 cents per share, in the second quarter. Excluding one-time costs and gains the company earned 96 cents per share. Its revenue rose 13 per cent to US$2.69 billion.

Analysts expected Master-Card to report a profit of 90 cents per share on US$2.6 billion in revenue, according to Zacks Investment Research.

The Purchase, a New York company, said it processed 14 per cent more transactions than it did a year ago. MasterCard said it is also expanding into other types of payments: earlier this month, it agreed to buy a 92 per cent stake in Britain?s VocaLink Holdings for about US$920 million.

MasterCard said VocaLink's technology allows for direct credit and debit payments between bank accounts and faster payments over mobile phones and the internet. It also runs a network of ATMs in the United Kingdom.

MasterCard shares have slipped about two per cent this year while the Standard & Poor's 500 index has risen six per cent.