American Express Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

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

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

American Express Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for American Express Company rose to $1.3 billion ($1.10 per share) vs. $1.02 billion (84 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter.

Revenue: Rose 12% to $7.62 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AXP beat the mean analyst estimate of 99 cents per share. It beat the average revenue estimate of $7.35 billion.

Quoting Management: “Strong revenues and excellent credit performance helped us deliver record earnings this quarter,” said Kenneth I. Chenault, chairman and chief executive officer, American Express. “Higher revenue growth reflects an attractive return on the investments we’ve been making to strengthen merchant relationships and enhance cardmember services.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 33% and in the fourth quarter of the last fiscal year, the figure rose 48.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

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).

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

(Source: Xignite Financials)