Mastercard shares drop after company warns coronavirus may hit 2020 revenue

Shares of Mastercard fell on Monday following the credit score card company issued a warning that the rapid-spreading coronavirus could harm its profits this 12 months.

“Cross-border travel, and to a lesser extent cross-border e-commerce advancement, is currently being impacted by the Coronavirus,” the firm stated in a statement on Monday after the bell. The firm said its very first-quarter revenue progress will be about two to three share points decrease than previous guidance.

“If the impact is constrained to the 1st quarter only, we be expecting that our 2020 yearly year-about-calendar year net income growth charge would be at the small conclude of the low-teens array,” the business extra.

Shares of Mastercard fell virtually 3% in right after-hrs investing on Monday.

The stock market experienced its worst promote-off in two several years on Monday following a sharp bounce in coronavirus situations exterior of China stoked fears about a prolonged international economic slowdown. Several significant firms including Apple and Procter & Gamble have sounded alarmed on the epidemic.

Mastercard reported far better-than-envisioned quarterly final results final thirty day period as prospects spent far more on its playing cards all through the holiday getaway shopping year.

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