American Express Co. (NYSE: AXP) has released its second quarter earnings per share of $1.42, down from $1.43 per share a year ago. Revenues net of interest expense were down to $8.284 billion versus $8.631 billion a year ago. Thomson Reuters was calling for estimates of $1.32 in earnings per share and revenues of $8.46 billion.
AmEx is facing the same challenges as other companies with currencies. The company said that its adjusted revenues would have been up 5% if you excluded the impact of foreign exchange rates and its business travel results. That increase primarily reflected higher card member spending and growth in the loan portfolio.
Consolidated provisions for losses were down by 4% to $467 million, and consolidated expenses were down by 4% to a total of $5.6 billion. AmEx said that its effective tax rate for the quarter remained unchanged at 34%. Its return on average equity was 28.1%, down by 0.7 points from a year ago.
24/7 Wall St. broke out and consolidated the unit by unit income and revenue. Currency adjustments were noted if AmEx expanded upon them and if they were applicable.
U.S. Card Services reported second-quarter net income growth of 15% to $886 million. Total U.S. card services revenues net of interest expense were up 6% to $4.7 billion, and the provisions for losses were down by 4% to $327 million.
International Card Services reported second-quarter net income up 62% to $125 million. Total international card revenue net of interest expense was down 10% to $1.3 billion, but revenues would have been up 5% on an FX-adjusted basis. Total international card services expenses were down 16% to $1.0 billion.
AmEx said that its Global Commercial Services reported second-quarter net income was down by 64% at $203 million, which included the joint venture transaction gain.
Global Network & Merchant Services had quarterly net income up 20% to $448 million. Total revenues net of interest expense fell 4% to $1.4 billion, but that would have been up 2% on currency-adjusted basis.
AmEx said that its “Corporate and Other” operations had a second-quarter net loss of $189 million, versus a net loss of $252 million a year earlier.
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Shares of American Express closed up 4-cents at $78.99 on Wednesday, but the shares were indicated down closer to $78.10 in the after-hours trading session. AmEx’s consensus analyst price target was almost $86.00 ahead of earnings, and its 52-week range is $75.75 to $94.89.
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