American Express (AXP) Tops Q1 EPS by 10c
Get Alerts AXP Hot Sheet
EPS Growth %: +38.8%
Financial Fact:
Total interest expense: 430M
Today's EPS Names:
MAXN, CSTR, ACU, More
Join SI Premium – FREE
American Express (NYSE: AXP) reported Q1 EPS of $1.45, $0.10 better than the analyst estimate of $1.35. Revenue for the quarter came in at $8.1 billion versus the consensus estimate of $7.99 billion.
Consolidated provisions for losses were $434 million, up 3 percent from $420 million a year ago. The current quarter reflected the accounting for certain cobrand loan portfolios as “held for sale,” where credit costs are now reported in other operating expenses. The increase from last year was also impacted by a smaller reserve release than a year ago.
Consolidated expenses were $5.5 billion, up 5 percent, from $5.2 billion a year ago. The current quarter’s expenses included:
- A $118 million increase in marketing and promotion costs to support initiatives to grow the business;
- An $84 million ($55 million after-tax) restructuring charge;
- A $63 million increase in rewards expenses, driven primarily by higher Card Member spending; and
- A benefit of $127 million ($79 million after-tax) from a gain on the sale of the JetBlue cobrand portfolio, which was reported in other operating expenses.
The effective tax rate for the quarter was 35 percent, up from 34 percent a year ago.
The company's return on average equity (ROE) was 23.6 percent, down from 29.0 percent a year ago.
For earnings history and earnings-related data on American Express (AXP) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- American Express (AXP) down despite beating Q1 estimates on top and bottom lines
- Park National Corp. (PRK) Tops Q1 EPS by 36c
- Oilfield firm SLB's profit rises on international drilling demand
Create E-mail Alert Related Categories
Earnings, Hot EarningsRelated Entities
EarningsSign 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!