American Express Earnings: Here’s Why the Stock is 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 0.67%.

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American Express Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.48% to $1.15 in the quarter versus EPS of $1.07 in the year-earlier quarter.

Revenue: Decreased 3.75% to $7.88 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Express Company reported adjusted EPS income of $1.15 per share. By that measure, the company beat the mean analyst estimate of $1.12. It missed the average revenue estimate of $8.05 billion.

Quoting Management: We are off to a strong start in 2013, thanks to our ability to grow revenue in a slow growth economy, control expenses and maintain a strong balance sheet, said Kenneth I. Chenault, chairman and chief executive officer. Cardmember spending grew 6 percent (7 percent adjusted for foreign currency translations) and we saw a modest increase in loans outstanding. Revenue from annual cardmember fees was also up from a year ago, reflecting the value our customers see in their relationship with American Express. Credit indicators continued to be excellent.”

Key Stats (on next page)…

Revenue decreased 9.26% from $8.69 billion in the previous quarter. EPS increased 5.5% from $1.09 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.21 to a profit $1.22. For the current year, the average estimate has moved down from a profit of $4.77 to a profit of $4.76 over the last ninety days.

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