American Express Company Earnings: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component American Express Company (NYSE:AXP) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for American Express Company rose to $1.3 billion ($1.07 per share) vs. $1.18 billion (97 cents per share) in the same quarter a year earlier. This marks a rise of 7% from the year-earlier quarter.

Revenue: Rose 8.3% to $7.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Express Company beat the mean analyst estimate of $1 per share. Analysts were expecting revenue of $7.57 billion.

Quoting Management: “Higher cardmember spending, excellent credit metrics and disciplined expense management helped us to start 2012 with record first-quarter earnings and revenues,” said Kenneth I. Chenault, chairman and chief executive officer. “The underlying strength of the business allowed us to add to the competitive advantages of our card products and introduce new digital services that create value for merchants and customers who choose to pay with American Express.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 12.2% and in the third quarter of the last fiscal year, the figure rose 13%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 4 cents in the fourth quarter of the last fiscal year, by 7 cents in the third quarter of the last fiscal year, and by 9 cents in the second quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is $1.08 per share, up from $1.05 ninety days ago. For the fiscal year, the average estimate has moved up from $4.19 a share to $4.25 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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