American Express Earnings: Here’s Why Shares are Down Now

American Express Company (NYSE:AXP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.91%.

American Express Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.43% to $1.27 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Decreased 3.17% to $8.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Express Company reported adjusted EPS income of $1.27 per share. By that measure, the company beat the mean analyst estimate of $1.22. It missed the average revenue estimate of $8.28 billion.

Quoting Management: “We generated record bottom line results this quarter despite an uneven global economy,” said Kenneth I. Chenault, chairman and chief executive officer. “Cardmember spending grew by 7 percent (8 percent adjusted for foreign currency translations), with broad-based gains throughout the business both here in the U.S. and internationally. We continued to build our cardmember loan portfolio while maintaining credit indicators at historically strong levels.”

Key Stats (on next page)…

Revenue decreased 1.85% from $8.4 billion in the previous quarter. EPS increased 10.43% from $1.15 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.20 and has not changed. For the current year, the average estimate has moved up from a profit of $4.78 to a profit of $4.79 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]