American Express Company Earnings: Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component American Express Company (NYSE:AXP) reported net income above Wall Street’s expectations for the third quarter. American Express is a global payments, network, and travel company that offers credit card products and travel-related services to consumers and businesses on an international scale.

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American Express Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for the credit services company rose to $1.24 billion ($1.03 per share) vs. $1.09 billion (90 cents per share) in the same quarter a year earlier. This marks a rise of 13% from the year earlier quarter.

Revenue: Rose 9% to $7.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AXP beat the mean analyst estimate of 96 cents per share. Analysts were expecting revenue of $7.58 billion.

Quoting Management: “We delivered strong bottom line results across all of our business segments this quarter,” said Kenneth I. Chenault, chairman and chief executive officer. “Revenue growth reflected a continuing return on the investments we’re making to enhance the services we provide consumers, small businesses, merchants and corporate customers.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 30.9% and in the first quarter, the figure rose 33%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the second quarter, by 4 cents in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 97 cents per share, an increase from 96 cents sixty days ago. The average estimate for the fiscal year is $3.98 per share, a rise from $3.90 ninety days ago.

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).

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(Source: Xignite Financials)

 

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