American Express (AXP) Posts 71% Increase in Q3 Profit
Tweet Send to a Friend
Get Alerts AXP Hot Sheet
Price: $74.44 -0.89%
EPS Growth %: +7.5%
Financial Fact:
Cash dividends declared per common share: 0.2
Today's EPS Names:
NED, OESX, WSTL, More
EPS Growth %: +7.5%
Financial Fact:
Cash dividends declared per common share: 0.2
Today's EPS Names:
NED, OESX, WSTL, More
Trade AXP Now!
American Express Co. (NYSE: AXP) said Thursday that its profit the the third quarter rose 71 percent, due to improved credit quality and higher spending by it affluent customers.
The credit card company reported second-quarter earnings of 90 cents per share, 5 cents better than the analyst estimate of 85 cents per share.
Revenue for the company rose 17 percent to $7.03 billion, beating the market consensus of $6.79 billion.
“Cardmember spending rose a strong 14 percent with the largest increases coming from businesses where we’ve been making significant investments: charge and premium co-brand products, corporate cards and cards issued by our bank partners,” said Kenneth I. Chenault, chairman and chief executive officer.
“Against the backdrop of regulatory and legislative changes that are reshaping the industry, we have been able to improve our competitive position relative to those issuers who rely more heavily on revolving credit and back-end fees.
During the quarter, consolidated provisions for losses totaled $373 million compared to $1.2 billion in the same period last year. Consolidated expenses totaled $5.0 billion, up 28 percent from $3.9 billion last year.
Shares of American Express are down 32 cents to $39.95 in aftermarket movement on Thursday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The credit card company reported second-quarter earnings of 90 cents per share, 5 cents better than the analyst estimate of 85 cents per share.
Revenue for the company rose 17 percent to $7.03 billion, beating the market consensus of $6.79 billion.
“Cardmember spending rose a strong 14 percent with the largest increases coming from businesses where we’ve been making significant investments: charge and premium co-brand products, corporate cards and cards issued by our bank partners,” said Kenneth I. Chenault, chairman and chief executive officer.
“Against the backdrop of regulatory and legislative changes that are reshaping the industry, we have been able to improve our competitive position relative to those issuers who rely more heavily on revolving credit and back-end fees.
During the quarter, consolidated provisions for losses totaled $373 million compared to $1.2 billion in the same period last year. Consolidated expenses totaled $5.0 billion, up 28 percent from $3.9 billion last year.
Shares of American Express are down 32 cents to $39.95 in aftermarket movement on Thursday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Hewlett-Packard Company (HPQ) Tops Q2 EPS by 6c as Sales Slide 10%
- Semtech Corp (SMTC) Reports In-Line Q1 EPS, Offers Q2 Guidance
- Best Buy (BBY) Posts Q1 adj.-EPS of 32c; Comps Down 1.1%
Create E-mail Alert Related Categories
EarningsRelated Entities
Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
