Mastercard has forecasted ongoing revenue momentum for the final quarter of 2024 after reporting stronger-than-expected advances in its third-quarter results driven by healthy consumer spending. Fourth-quarter revenue is anticipated to show growth in the low teens on a currency-neutral basis, excluding acquisitions year over year, as expressed by Chief Financial Officer Sachin Mehra during a recent conference call.
Analysts surveyed by Capital IQ predict revenue of $7.43 billion for the upcoming quarter. In the third quarter, currency-neutral revenue increased by 14%. Chief Executive Michael Miebach highlighted that 'the macroeconomic environment remains supportive and continues to underpin the strength in consumer spending,' addressing analysts in a Capital IQ transcript.
He added that 'the labor market remains strong, even if slightly below historically tight levels. And inflation has moderated, albeit at varied levels across categories and countries. Overall, we remain positive about our growth outlook.' Recent government data indicated that US consumer spending growth exceeded expectations in September, fueled by a rebound in outlays on goods.
Mastercard anticipates that fourth-quarter operating expense growth will be at the higher end of a low double-digit range compared to the same period in 2023, largely due to increased advertising and marketing efforts, as noted by Mehra. For its third quarter, the company's revenue grew to $7.37 billion, an increase from $6.53 billion year over year, surpassing the $7.27 billion average analyst estimate on Capital IQ.
Adjusted earnings per share surged to $3.89 for the three months ended September 30, compared to $3.39, beating the Street's projection of $3.75. In its payment network division, revenue increased by 11% on a currency-neutral basis year over year, thanks to growth in both domestic and cross-border transactions.
Although cross-border volume saw a 17% increase year over year, it reflected a deceleration from the 21% growth observed in the same quarter last year. Despite these revelations, Mastercard's shares declined by 2.5% during late afternoon trading. Additionally, the revenue from value-added services and solutions climbed 19% year over year..