MasterCard Forecasts Positive Earnings

Analysts are forecasting earnings of $8.75 per share for MasterCard® Inc. this year, while Chris Brendler of Stifel, Nicolaus & Co. has indicated in a note to clients that he expects earnings to be as low as $8.61 per share for 2008. Brendler also noted that “We believe MasterCard’s business model is resilient, and we expect the slowdown to only modestly impact earnings-per-share growth as pricing and expense control help offset slower volume growth.”

On Monday shares added 18 cents to $148 in premarket trading and were ahead of the credit card company’s third-quarter report. According to a poll by thomson Reuters, the average analyst prediction is that the company will report earnings for the quarter of $2.25 per share.

MasterCard’s results will be affected by a $515.5 million charge related to a settlement agreement with competitor Discover Financial Services LLC. Investors will be looking for any signs of diminishing transaction volume, or any other effects of a declining economy.