AXP: American Express Stock Slips Despite Earnings Beat

by Christopher Freeburn | April 17, 2014 10:30 am

AXP: American Express Stock Slips Despite Earnings Beat

On Wednesday, American Express (AXP[1]) posted a higher first-quarter profit that exceeded Wall Street estimates, but fell short of revenue forecasts. AXP shares sank about 2% in Thursday morning trading.

AmericanExpress Card630 Flickr 300x196 AXP: American Express Stock Slips Despite Earnings Beat [2]
Source: Flickr[3]

AXP shares fell after the credit-card issuer said it earned $1.43 billion during the quarter, up almost 12% from $1.28 billion in the prior-year period. EPS came in at $1.33, topping the $1.30 that analysts had predicted, the Wall Street Journal notes,

However, AXP reported revenue of $8.2 billion, up from $7.89 billion in the year-ago quarter, but slightly below the $8.36 billion expected by analysts.

AXP card holders increased their spending during the first quarter by 7%. That compared to a 9% rise in spending during the prior quarter. American Express CEO Kenneth Chenault┬ánoted that the company “continued to see a modest increase in card-member loan balances” during the quarter, despite lingering caution among consumers.

On Wednesday, AXP stock closed at $87.40 per share.

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Endnotes:
  1. AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
  2. [Image]: http://investorplace.com/wp-content/uploads/2011/06/AmericanExpress_Card630_Flickr.jpg
  3. Flickr: http://www.flickr.com/photos/sharpimage/
  4. CSX Stock Falls Despite Q1 Earnings Beat: http://investorplace.com/2014/04/csx-stock-falls-despite-q1-earnings-beat/#.U0_kCl5hOf0
  5. NFLX Stock: 2 Options Trades for a Potentially Powerful Move: http://investorplace.com/2014/04/netflix-earnings-nflx-stock/#.U0_kBV5hOf0
  6. Check Out the Attractive Bounce in PNC Stock: http://investorplace.com/2014/04/pnc-stock-financials/#.U0_kCF5hOf0

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