MasterCard Inc. shares have surged this week after it announced a $1 billion stock buyback plan and said it expects profit to rise faster than some analysts have predicted, reports Bloomberg News.
Earnings-per-share growth will average at least 20% compounded annually from 2011 through 2013, MasterCard said Wednesday in a federal filing before a meeting with analysts. Annual operating margins will be at least 50% and net revenue, compounded annually, will increase 12% to 14%, the Purchase, N.Y., card company said. The stock rose 5.2%, to $210.18 on Wednesday, and was trading at $211.57 midmorning Thursday, up 0.66%
MasterCard had previously said it expected annual margin expansion of 3 to 5 percentage points from 2009 through 2011, and average annual net income growth of 20% to 30%. MasterCard announced on Tuesday a share buyback of up to $1 billion.