Get Stock Quote Here The American Express Company (AXP), also known as Amex, is an American multinational financial services corporation headquartered in Manhattan's Three World Financial Center in New York City, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US. BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion. Fortune listed Amex as one of the top 20 Most Admired Companies in the World. The company's logo, adopted in 1958, is a Centurion whose image appears on the company's travelers' cheques, charge cards and credit cards.
Reported after close today: Earnings: EPS $1.45 and revenue $8.09B Estimates: EPS $1.35 and revenue $8B
American Express earnings $1.20 per share vs expected EPS of 97 cents American Express reported adjusted earnings of $1.20 per share on revenues of $7.77 billion. Analysts expected the credit card company to report earnings of 97 cents a share on about $7.7 billion in revenue, according to a consensus estimate from Thomson Reuters. The report comes as the company looks to rebound from its lost Costco revenues. Last year, the wholesale giant chose not to renew its partnership with American Express. It later announced Visa would take its place as the only accepted credit card at its warehouses, and thatCitigroup would be the exclusive issuer of its credit cards. In a $12 billion portfolio, Costco's 11 million customers represented 10 percent of American Express' customers and 20 percent of its loans. The credit card company increased its marketing and promotional expenses by $200 million in 2016. At its 2016 Investor Day, the company said it expects to pare its expenses by $200 million to $400 million in 2017.
I have an AXP card which I had to get because of the Costco partnership. I know I will not bother using it again.
Bank of America/Merrill Lynch upgraded the stock to "neutral" from "underperform" and increased its price target to $68 from $60.
D.A. Davidson has a Neutral rating on American Express Company AXP 0.37%. Cyganovich expects the company’s U.S. card NCOs to have been flat at 1.6 percent on a month-on-month basis in November. The Master Trust 31–60 day delinquencies declined 9.9 percent in the same period five months back, “but there appears to be noise from balances in that month.”
American Express' competitive advantages--a reputation for superior service, a network of attractive customers and merchants, and a corporate business with high switching costs--remain intact.
