Still Going Strong at MasterCard

Credit card runner-up MasterCard (NYSE: MA) reported better-thanexpected third-quarter earnings recently — impressive for a financial firm these days. Revenue was up 24 percent over the year-ago quarter, and net income rose 7 percent.

Shares have been lopped in half over the past six months, amid fears of recession. But MasterCard is still growing at a pretty healthy clip: Purchase volume increased 13 percent to nearly half a trillion dollars, while total transactions grew 13 percent, to 5.4 billion. As has been the case for a while, global growth led the way, with 25 percent purchase volume growth in the Asia/Pacific region, 25 percent growth in South Asia/Middle East/Africa, and 19 percent growth in Latin America. Few complaints there. U.S. purchase volume grew at a much more modest 7 percent ... by far the slowest growing segment.

Shares have recently been cheap enough, in the $160 range, to justify buying, but the near-term future is bound to be anything but easy. A prolonged global recession could keep consumers suppressed and spending less. If you have the guts to dip your toes in, you'd be welladvised to check your lofty expectations at the door, have a long-term time horizon, and be prepared for an all-out fallout of the global consumer market over the next year or two.