Mastercard Inc. (NYSE: MA) rose rose over 10 percent in early trading after the credit card company announced better-than-expected fourth quarter results despite concerns about pressure on U.S. consumers. The jump was primarily attributed to international growth and the sale of its holdings in Brazilian credit card company Redecard. Mastercard did note a slowdown in domestic consumer spending, but is more insulated with about half of their business being generated outside of the United States. Shareholders are hoping that the U.S. can stay out of a recession and the rest of the world can stay on track.

Mastercard reported fourth quarter net income of $304.2 million, or $2.26 per share, versus $40.9 million, or 30 cents per share, a year earlier. Results did include $1.37 per share from the sale of its stake in Brazil’s Redecard that went public in July. The company is also facing less stress than others like Amex because it doesn’t issue cards itself; rather, it makes money from processing and transaction fees that it charges bank customers. Consequently, the company could see lower profits if there were a global slowdown, but right now worldwide gross dollar volume jumped 15% this year, processed transactions increased 17% and the number of cards in circulation rose 13%.

Mastercard offered some useful insight into the domestic economy as well. The firm noted that consumers were spending more money on staples than discretionary items. Consumers are moving away from items like jewelry, restaurants, and home furnishings to instead purchase things like gasoline, groceries, and personal health care items. The company also noted a slowdown in spending in the U.S.; however, spending still did manage to grow at 5.1%. However, countries in Asia, Middle East, and Africa saw their spending increase an astounding 42%. Meanwhile, our neighbors in Latin America saw spending increase 28%. So, while things may be bad in the U.S., they are certainly booming abroad.

In the end, this is another interesting stock that many investors grouped with consumer spending in the United States alone. It is important to research companies as anyone who did their homework would realize that much of Mastercard’s profits are derived abroad and the company is not responsible for any loans that are defaulted on as it does not issue the cards itself. Combined, these factors make MA a stock that is definitely worth watching!

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