PURCHASE, N.Y. – Shares in MasterCard Inc. surged as much as 21% yesterday after the cards company reported a 63% rise in third quarter earnings.
Net income for the quarter was $314 million, or $2.31 a share, up from $193 million, or $1.42 a share, a year ago. The company attributed the higher profits to increased spending, especially overseas, by its cardholders.
As a result, revenues for the third quarter rose 20%, to $1.08 billion, from last year’s third quarter. Third quarter results also included a one-time gain of $72 million from the sale of the company’s Redecard SA Brazilian subsidiary.
MasterCard shares, among the hottest on the market since a May 2005 initial public offering, rose sharply yesterday morning to a new high of $190, before closing up almost 21% at $189.91. The share price has quadrupled from the IPO price of $39.
