American Express Falls, eBay Rises After Q3 Earnings

Both American Express AXP and eBay EBAY released third-quarter earnings results on Wednesday after the closing bell. In the after hours trading session, neither stock moved much, but on Thursday they are headed in different directions. American Express shares were last trading down around 2.40 percent to $57.94. The stock gapped lower at the open and continued to fall during the first part of the session. Year-to-date, the stock has risen around 23 percent. The company reported net income attributable to common shareholders or $1.24 billion, a one percent increase from the $1.22 billion that the company reported in the year ago period. Earnings per share were $1.09 versus $1.03 last year. This was in line with Wall Street analysts consensus earnings expectations. Net revenues rose by four percent to $7.86 billion. In the year ago period, American Express reported revenues of $7.57 billion. This came in slightly below Street revenue expectations of $7.93 billion. Although eBay EBAY was essentially flat in Wednesday's after hours session, the stock surged at the open of trade on Thursday. Volume was extremely heavy around the open as buyers stepped into the name. The company reported adjusted earnings of $718 million or $0.55 per share, versus $628 million or $0.48 per share, in the year ago period. This exceeded Wall Street consensus earnings per share estimates of $0.54 by a penny. Net revenues in the quarter were up 15 percent to $3.40 billion compared to $2.97 billion last year. This barely missed Street consensus revenue estimates of $3.41 billion. Looking ahead to the fourth-quarter, the company said that it expects net revenues of $3.850 billion to $4.000 billion and adjusted earnings per share of $0.66 to $0.69. Currently, analysts project that EBAY will report EPS of $0.68 on revenues of $3.94 billion for the fourth-quarter. For fiscal 2012, the company now expects adjusted earnings of $2.32 to $2.35 per share on revenues of $13.950 billion to $14.100 billion. Previously, EBAY had guided for EPS of $2.28 to $2.33 on revenues of $13.800 billion to $14.100 billion. Currently, analysts have consensus EPS estimates of $2.34 on revenue of $14.030 billion for the full-year.