American Express (AXP) Slumps Following Improved Q1 Results, Uncertainty Lies Ahead
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Price: $73.32 +1.51%
Revenue Growth %: +5.0%
Financial Fact:
Charge card: 195M
Today's EPS Names:
LBIX, ESEA, ISS, More
Revenue Growth %: +5.0%
Financial Fact:
Charge card: 195M
Today's EPS Names:
LBIX, ESEA, ISS, More
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American Express Company (NYSE: AXP) is trading lower following the financial firm's first-quarter earnings Wednesday, despite improved metrics all around from the company.
Net income in the quarter was $1.177 billion, or $0.97 per share, up 33 percent from $885 million in the same period last year.
Revenue in the quarter popped 7 percent to $7.031 billion.
Analysts were looking for EPS of $0.92 on sales of $6.98 billion.
"Continued improvement in credit quality strengthened our bottom line results and provided additional resources to enhance premium products, expand reward offerings and build technology that supports our best-in-class customer service," Chair and CEO Ken Chenault commented. "A good deal of our investment spending has been funded with the benefits of rapidly improving credit quality and payments from the settlement of litigation with MasterCard and Visa. Now, with credit losses at historical lows and settlement payments ending in the second and fourth quarter, we are moving forward with plans to slow the growth of our operating expenses towards the end of this year and into next."
Provision for loan losses dropped from $943 million to $97 million, which consolidate expenses increased 19 percent from $4.4 billion to $5.2 billion.
Return on equity bumped up 9.9 points, from 18 percent to 27.9 percent.
American Express shares are 1.5 percent lower post-market.
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Net income in the quarter was $1.177 billion, or $0.97 per share, up 33 percent from $885 million in the same period last year.
Revenue in the quarter popped 7 percent to $7.031 billion.
Analysts were looking for EPS of $0.92 on sales of $6.98 billion.
"Continued improvement in credit quality strengthened our bottom line results and provided additional resources to enhance premium products, expand reward offerings and build technology that supports our best-in-class customer service," Chair and CEO Ken Chenault commented. "A good deal of our investment spending has been funded with the benefits of rapidly improving credit quality and payments from the settlement of litigation with MasterCard and Visa. Now, with credit losses at historical lows and settlement payments ending in the second and fourth quarter, we are moving forward with plans to slow the growth of our operating expenses towards the end of this year and into next."
Provision for loan losses dropped from $943 million to $97 million, which consolidate expenses increased 19 percent from $4.4 billion to $5.2 billion.
Return on equity bumped up 9.9 points, from 18 percent to 27.9 percent.
American Express shares are 1.5 percent lower post-market.
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