Mastercard shares drop after company warns coronavirus may hit 2020 revenue

Earnings

Shares of Mastercard fell on Monday after the credit card company issued a warning that the fast-spreading coronavirus could hurt its revenue this year.

“Cross-border travel, and to a lesser extent cross-border e-commerce growth, is being impacted by the Coronavirus,” the company said in a statement on Monday after the bell. The company said its first-quarter revenue growth will be about two to three percentage points lower than previous guidance.

“If the impact is limited to the first quarter only, we expect that our 2020 annual year-over-year net revenue growth rate would be at the low end of the low-teens range,” the company added.

Shares of Mastercard fell nearly 3% in after-hours trading on Monday.

The stock market suffered its worst sell-off in two years on Monday after a sharp jump in coronavirus cases outside of China stoked fears about a prolonged global economic slowdown. Many major companies including Apple and Procter & Gamble have sounded alarmed on the epidemic.

Mastercard reported better-than-expected quarterly results last month as customers spent more on its cards during the holiday shopping season.

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