11:45 AM EDT, 07/31/2024 (MT Newswires) -- Mastercard's ( MA ) results rose more than expected in the second quarter amid healthy consumer spending and demand for value-added services, while the payments firm said it expects double-digit revenue growth in the third quarter.

Adjusted earnings per share climbed to $3.59 from $2.89 last year and topped the $3.51 average analyst estimate on Capital IQ. Revenue rose to $6.96 billion for the three months ended June 30 from $6.27 billion a year ago and beat the $6.85 billion market view. Shares of Mastercard ( MA ) were up 2.7% in Wednesday trade.

Gross dollar volume, which reflects the value of all transactions processed on Mastercard's ( MA ) platform, increased 9.4% in local currency terms to $2.403 trillion. The pace of growth decelerated from more than 12% in the same quarter of last year. GDV advanced by double digits year over year in Europe and Latin America, and by 6.4% in the US.

The results were buoyed by cross-border volume growth of 17% amid healthy consumer spending supported by a strong labor market and currency-neutral revenue growth of 19% for Mastercard's ( MA ) value-added services and solutions, Chief Executive Michael Miebach told analysts on a conference call, according to a Capital IQ transcript.

"While tailwinds and headwinds to economic growth remain on balance, we remain positive about our growth outlook," he said.

Through the first four weeks of the third quarter, trends remained "generally stable" on a sequential basis, Chief Financial Officer Sachin Mehra said on the call. Revenue is expected to be at the high end of a low double-digit range on a currency-neutral basis in the ongoing quarter, excluding acquisitions, he said.

Operating expenses are expected to grow at the low end of a low double-digit range, while Mastercard ( MA ) expects to record a one-time restructuring charge of $190 million in the third quarter that will be excluded from non-GAAP results, according to Mehra.

For the full year, Mastercard ( MA ) continues to expect revenue growth at the high end of a low double-digit range on a currency-neutral basis, excluding acquisitions, he said. The Capital IQ-polled consensus is for revenue of $27.83 billion in 2024 compared with $25.1 billion in 2023.

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