These Ubiquitous Financial Services Stocks Tanked After Earnings

American Express Company (NYSE:AXP) reported net income above Wall Street’s expectations for the third quarter. Net income for the credit services company rose to $1.24 billion ($1.03 per share) vs. $1.09 billion (90 cents per share) in the same quarter a year earlier. This marks a rise of 13% from the year earlier quarter. Revenue rose 9% to $7.6 billion from the year earlier quarter. AXP beat the mean analyst estimate of 96 cents per share. Analysts were expecting revenue of $7.58 billion.

“We delivered strong bottom line results across all of our business segments this quarter,” said Kenneth I. Chenault, chairman and chief executive officer. “Revenue growth reflected a continuing return on the investments we’re making to enhance the services we provide consumers, small businesses, merchants and corporate customers.”

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).

E*TRADE Financial Corporation (NASDAQ:ETFC) reported net income above Wall Street’s expectations for the third quarter.Net income for the investment brokerage rose to $70.7 million (24 cents per share) vs. $8.4 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.Revenue rose 3.6% to $507.3 million from the year earlier. ETFC beat the mean analyst estimate of 19 cents per share. It fell short of the average revenue estimate of $520.6 million.

“We are pleased with our third quarter results which – amid significant market volatility – demonstrated strength in our brokerage business, continued improvement in our loan portfolio and measurable progress against our strategic initiatives,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “The retail investor was highly engaged, particularly in early August when we successfully managed periods of record trade, call, online chat and login volumes. Over the course of the quarter, we benefited from growth in net new assets and accounts, supported by a stable customer retention rate. Delinquency trends in our loan portfolio continue to improve and our quarterly loan provision is down approximately 80 percent from its peak. Our solid execution continues to move the firm forward as we focus on delivering the best investing experience and creating franchise value.”

Competitors to Watch: TD Ameritrade Holding Corp. (NASDAQ:AMTD), The Charles Schwab Corp. (NYSE:SCHW), optionsXpress Hldgs., Inc. (NASDAQ:OXPS), Interactive Brokers Group, Inc. (NASDAQ:IBKR), Morgan Stanley (NYSE:MS), FXCM Inc (NYSE:FXCM), Gain Capital Holdings Inc (NYSE:GCAP), TradeStation Group, Inc. (NASDAQ:TRAD), SWS Group, Inc. (NYSE:SWS), and Raymond James Financial, Inc. (NYSE:RJF).