American Express Up 5% After Big Earnings Beat
Shares of American Express Company (NYSE: AXP) traded up more than 4.5 percent in Wednesday’s after-hours session, following the announcement of the company’s Q3 results.
Earnings of $1.24 per share and revenue of $7.77 billion beat the Street’s consensus by $0.28 and $50 million, respectively. It should be noted that, while higher than expected, revenue was the lowest reported in more than five years, largely due to a loss of a Costco Wholesale Corporation (NASDAQ: COST) contract, which had accounted for roughly 8 percent of all money spent using AmEx cards in 2015.
For the full year, management said it expects earnings in the $5.90 to $6.00 per share range.
"Strong operating discipline and credit quality helped to keep us ahead of the 2016 financial outlook that we first provided at the beginning of the year," CEO and Chairman Kenneth I. Chenault said. "Adjusted billed business was up 7 percent, adjusted loan growth remained healthy and net card fees rose 10 percent, reflecting strong performance across our premium card portfolios.”
"The underlying performance reflected our broad, diversified business model as well as the relationships we've built over many years with Card Members who value the range of benefits and service that come with membership. Strength in our consumer business, growth internationally, the benefits of a larger merchant network and a broader presence among smaller and mid-sized companies offset softness in spending by large corporate Card accounts,” he added.
Shares traded recently at $64.40, up 5.1 percent.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.