American Express Earnings Left Home (AXP)

Banking, finance, and taxes

Published: January 26, 2009 4:31 pm

Last Updated: April 27, 2020 3:47 pm

Amex_logo American Express Company (NYSE: AXP) posted earnings from continuing operations of $0.21EPS, down about a 70% year-over-year decline. Revenue plunged 11% to $6.51 billion. First Call expectations were $0.22 EPS and $7.22 billion in revenue.

The company is calling the economy the harshest in decades. It is still seeing write-offs and past-due loans rising.The total loss provision was roughly $1.4 billion. The company’sreturn on equity fell to 21.7%, down from 37.3% a year ago.

It looks like allcard services, network & merchant, commercial services, cardservices, and even cardmember spending all looked like they were loweryear-over-year.

At least its customers are de-leveraging as well, so that means that they won’t be overextended when the economy improves.

Shares closed down 5% at $15.20 in regular trading today, but are up 5% in after-hours action.

Many will find this report disappointing. But in today’smarket where there is at least a building of some form of a perceivedbase. Estimates on earnings had alreadybeen cut in more than half from just three months ago.

Jon C. Ogg
January 26, 2009

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.