American Express (AXP) Higher After Q3 Results

Shares of American Express Company (NYSE: AXP) are 5% higher in after-hours trading Monday after the company reported Q3 results.

American Express reported Q3 EPS of $0.74, versus the analyst estimate of $0.59. Revenues for the quarter were $7.2 billion, versus the consensus of $7.31 billion and $6.96 billion last year.

CEO Kenneth I. Chenault said, "While we continued to generate a substantial level of earnings this quarter, bottom line results were down from a year ago as growth in Cardmember spending slowed, lending volumes moderated, and we set aside significant additions to our loan loss reserves." He also said cardmember spending is likely to remain soft.

American Express said they are moving ahead with reengineering plans that will free up resources by reducing operating costs and staffing levels.

Following the results, Moody's lowered American Express ratings to A2, with a negative outlook.

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