American Express Company Earnings: Five Straight Quarters of Double-Digit Growth

S&P 500 (NYSE:SPY) component American Express Company (NYSE:AXP) reported its results for the fourth 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 Fourth Quarter.

Results: 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.

Actual vs. Wall St. Expectations: AXP beat the mean analyst estimate of 99 cents per share. It fell short of the average revenue estimate of $7.92 billion.

Quoting Management: “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.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 13% and in the second quarter, the figure rose 30.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the third quarter, by 9 cents in the second quarter, and by 4 cents in the first quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 97 cents per share, a drop from 98 cents. The average estimate for the fiscal year is $4.05 per share, a rise from $4 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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com