MasterCard Net Up 23%; Stock Sinks
MasterCard Inc.'s fourth-quarter profit rose 23% as the company reported higher processed transactions and improved spending, but the results were below analysts' expectations, sending the stock sharply lower.</br></br>MasterCard shares fell $25.47, or 10%, to $222.11 in 4 p.m. composite trading on the New York Stock Exchange.</br></br>The results included higher operating expenses and a spike in rebates and incentives.</br></br>MasterCard lagged behind bigger rival Visa Inc., which reported better-than-expected quarterly results Wednesday aided by higher consumer spending and growth in its debit card segment.</br></br>"For MasterCard, the expenses and rebates and incentives were higher than what expectations were," said Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods. "Visa was able to beat expectations on all accounts."