Banking, finance, and taxes
American Express Edges Out Earnings
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American Express Co. (NYSE: AXP) released its second-quarter financial results after markets closed Wednesday. The company said that it had $1.47 in earnings per share (EPS) and $8.31 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.44 in EPS and $8.2 billion in revenue. The same period from last year had $2.10 in EPS and $8.23 billion in revenue.
In terms of its business segments the company reported:
- U.S. Consumer Services reported second-quarter net income of $440 million, down 59 percent from $1.1 billion a year ago.
- International Consumer and Network Services reported second-quarter net income of $209 million, down 8 percent from $228 million a year ago.
- Global Commercial Services reported second-quarter net income of $500 million, down 13 percent from $576 million a year ago.
- Global Merchant Services reported second-quarter net income of $430 million, up 15 percent from $373 million a year ago.
The company’s return on average return on equity (ROE) was 21.7%, down from 26.4% a year ago.
Kenneth Chenault, Chairman and CEO, of Amex, commented:
There were many signposts of progress this quarter: adjusted revenue growth accelerated to 8 percent; adjusted Card Member spending was up 8 percent and spread across business units and geographies; healthy loan growth and credit quality; strong new card acquisition – particularly among affluent consumers in the U.S.; and continued progress on reducing operating expenses. The work is not complete, but we’re now moving forward with a stronger foundation and a blueprint for growth in the years ahead.
Shares of Amex closed Wednesday at $85.91, with a consensus analyst price target of $84.61 and a 52-week range of $59.50 to $85.98. Following the release of the earnings report, the stock was up 1.4% at $87.11 in the after-hours trading session.
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