American Express and Capital One Stocks Decline Following Earnings Reports
American Express Company (NYSE:AXP) reported its results for the fourth quarter. Net income for American Express Company rose to $1.19 billion ($1.01 per share) vs. $1.06 billion (88 cents per share) in the same quarter a year earlier. This marks a rise of 12.2% from the year earlier quarter. Revenue rose 6.9% to $7.74 billion from the year earlier quarter. AXP beat the mean analyst estimate of 99 cents per share. It fell short of the average revenue estimate of $7.92 billion.
“Results for the quarter underscored the ability of our spend-centric model to generate revenue and earnings growth at a time when consumer behavior and regulations are changing the economics of the revolving credit business,” said Kenneth I. Chenault, chairman and chief executive officer, American Express.
Competitors to Watch: Discover Financial Services (NYSE:DFS), Capital One Financial Corp. (NYSE:COF), Bank of America Corp. (NYSE:BAC), Visa Inc. (NYSE:V), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), SLM Corporation (NYSE:SLM), First Investors Financial Services Group (FIFS), and CompuCredit Holdings Corp (NASDAQ:CCRT).
Capital One Financial Corporation (NYSE:COF) reported its results for the fourth quarter. Net income for the credit services company fell to $407 million (88 cents per share) vs. $697 million ($1.52 per share) a year earlier. This is a decline of 41.6% from the year earlier quarter. Revenue fell to $4.1 billion from $4.6 billion the year earlier quarter. COF fell short of the mean analyst estimate of $1.53 per share. Analysts were expecting revenue of $4.1 billion.
“In 2011, we made significant investments to restart growth across our lending businesses after a long period of cyclical declines in loan volumes, and we’re seeing these investments gain traction,” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. “The strong underlying performance of our businesses and the compelling financial and strategic value of our planned acquisitions put us in a position to deliver and sustain shareholder value through growth potential, strong returns, and strong capital generation.”
Competitors to Watch: American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Northern Trust Corporation (NASDAQ:NTRS), Wells Fargo & Company (NYSE:WFC), SLM Corporation (NYSE:SLM), Wilshire Bancorp, Inc. (NASDAQ:WIBC), and HSBC Holdings plc (NYSE:HBC).