American Express (AXP) Tops Q3 EPS by 4c, Sales In-Line

American Express (NYSE: AXP) reported Q3 EPS of $1.40, $0.04 better than the analyst estimate of $1.36. Revenue for the quarter came in at $8.33 billion versus the consensus estimate of $8.37 billion.

“We delivered another solid quarter of financial results,” said Kenneth I. Chenault, chairman and chief executive officer. “Card Member spending was up 9 percent, a modest acceleration from last quarter, and loan balances grew 5 percent. Revenues continued to rise at a steady pace, but the growth rate is still below our long-term target.

“On the cost side of the ledger, operating expense growth remained on track to come in well below our target for the full year and that’s one of the factors that provided the flexibility to invest in both the core business as well as some newer initiatives.

“We developed new partnerships and services with Uber, Apple Pay and McDonald’s that are helping us to capitalize on the convergence of online and offline commerce. At the same time, initiatives like the Amex EveryDay Credit Card and OptBlue are helping to make our brand more welcoming and inclusive as we expand into markets not traditionally served by American Express.

“Over the last couple of years we have delivered solid earnings through a combination of disciplined expense control, a strong balance sheet and targeted investments in growth initiatives. While the economy is stronger, it is not growing as fast or as steadily as most people would like, and those same levers will continue to be an important part of our strategy.

“Our focus will be on delivering earnings growth in an environment that is characterized by rapidly changing technologies, intense competition, regulation and an economy that may continue to grow at only a modest pace.”

For earnings history and earnings-related data on American Express (AXP) click here.

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