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American Express reported earnings that beat analysts’ expectations Wednesday after the bell.
Here’s how the company did compared to what Wall Street expected:
- EPS: $1.47 vs. $1.43, according to Thomson Reuters
- Revenue: $8.31 billion vs. $8.20 billion, according to Thomson Reuters
In the year-ago quarter, the company reported earnings of $2.10 per share and revenue of $8.24 billion.
American Express reported net income of $1.3 billion, down 33 percent from a year ago. The company said, however, it still had a relationship with Costco in the year ago quarter.
The relationship ended last year. Visa and Citi now partner with Costco for its credit cards.
Chairman and CEO Kenneth Chenault said American Express has moved away from cobrand relationships in recent years that “no longer made economic sense.” Instead, the company has refocused on investing in its business and lowering operating costs.
“While each of those moves suppressed short-term results, we believed they would put us in a stronger position for the longer term,” Chenault said in a statement.
American Express said it’s confident that it will see full-year earnings between $5.60 and $5.80 per share. Wall Street had projected $5.70 per share.
AXP intraday chart (after-hours movement in yellow)
Source: FactSet
The stock fell 1 percent after initially gaining 1 percent in after-hours trading following the announcement.
After passing the Fed’s stress test, American Express announced last month it would increase its quarterly dividend to 35 cents per share starting in the third quarter.
The company also said it would buy back up to $4.4 billion of common stock between the third quarter of this year and the second quarter of next year.
American Express shares hit a fresh 52-week intraday high of $85.88 on July 5.
The stock has gained about 15 percent so far this year, outperforming the Dow Jones industrial average’s roughly 9 percent gain.
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