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Feb. 24, 2020, 6:14 p.m. EST

Mastercard says coronavirus will hurt sales, stock declines

Mastercard Inc. (NYS:MA) shares declined in extended trading Monday after the payment processor said that the COVID-19 outbreak would damage its revenue. In an announcement, Mastercard said that the disease caused by coronavirus is expected to shave 2 to 3 percentage points from its first-quarter revenue guidance because of the impact on "cross-border travel, and to a lesser extent cross-border e-commerce growth." Mastercard said in its late-January earnings call that it expected full-year revenue to increase in the low-teens without currency effects or acquisitions, and that first-quarter results would be about 2 percentage points lower, "primarily due to higher growth in rebates and incentives." "Under these circumstances, we would expect year-over-year net revenue growth of 9-10% in the first quarter on a currency-neutral basis, excluding acquisitions," Mastercard said in its announcement . Shares fell more than 2% in after-hours trading following the announcement.

Link to MarketWatch's Slice.