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 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.
American Express Company Earnings Cheat Sheet for the First Quarter
Results: Net income for the credit services company rose to $1.18 billion (97 cents/share) vs. $885 million (73 cents/share) YoY. A rise of 33% from the year earlier quarter.
Revenue: Fell 18.1% to $5.9 billion YoY.
Actual vs. Wall St. Expectations: AXP beat the mean analyst estimate of 92 cents/share. Estimates ranged from 78 cents per share to $1.01 per share.
Quoting Management: “Record earnings this quarter reflect credit quality and billed business trends that are among the best we’ve seen,” said Kenneth I. Chenault, chairman and chief executive officer, American Express. “Cardmember spending was up 17 percent, with broad-based strength across all our businesses segments. After several years of decline, our lending portfolio leveled off and total revenues grew at the healthiest pace since before the recession.”
The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 48.3% and in the third quarter of the last fiscal year, the figure rose 70.8%.
A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 16.5%.
Today’s Performance: Shares of AXP are down 0.6% in after hours trading.