Earnings: Transaction growth drives MasterCard; Discovery profit tops forecast

MasterCard's second-quarter net income climbed 9.8 percent as

MasterCard's second-quarter net income climbed 9.8 percent as it benefited from volume growth and handled more transactions in the period. Photo Credit: AP

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It's earnings season, and companies with national and global reach are releasing their financial results on July 31, 2014. See updates below, and check back throughout the day as more earnings reports are added.

Transaction growth drives MasterCard profit
MasterCard's second-quarter net income climbed 9.8 percent as it benefited from volume growth and handled more transactions in the period.

The company's results topped analysts' estimates. Shares rose in premarket trading on Thursday.

MasterCard Inc. is the world's second-largest processor of debit and credit card payments. Like its bigger rival, Visa Inc., it benefits from heightened consumer spending.

The company, based in Purchase, New York, earned $931 million, or 80 cents per share, for the three months ended June 30. That's up from $848 million, or 70 cents per share, a year earlier.

The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share.

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Revenue rose 13 percent to $2.38 billion from $2.1 billion, beating Wall Street's forecast of $2.3 billion. The revenue performance were somewhat offset by an increase in rebates and incentives.

Worldwide purchase volume climbed 13 percent to $821 billion, while processed transactions increased 12 percent to 10.6 billion.

Mastercard's stock, which trades under MA, was down $1.21 at $74.68 in midmorning trading Thursday.

Discovery profit tops expectations
Discovery Communications Inc. on Thursday reported profit that increased by 26 percent in its second quarter, and topped analysts' expectations.

The Silver Spring, Maryland-based company said profit increased to $379 million, or $1.09 per share, from $300 million, or 82 cents per share, in the same quarter a year ago.

Earnings, adjusted for amortization costs, were $1.16 per share. The average per-share estimate of analysts surveyed by Zacks Investment Research was for profit of 93 cents.

The operator of cable TV channels such as TLC and Animal Planet said revenue climbed 9.7 percent to $1.61 billion from $1.47 billion in the same quarter a year ago, and beat Wall Street forecasts. Analysts expected $1.59 billion, according to Zacks.

Discovery Communications shares have decreased $6.71, or 7.4 percent, to $83.71 since the beginning of the year, while the Standard & Poor's 500 index has climbed 6.6 percent. However, the stock has increased $3.99, or 5 percent, in the last 12 months.

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Shares of Discovery Communications, which trade under DISCA, were up $1.35 at $85.06 in midmorning trading Thursday.

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