American Express Company (NYSE:AXP) stock was soaring on Thursday after the card service company released its earnings report for the third quarter of 2016.
American Express reported earnings per share of $1.20 for the third quarter of 2016. This is down 3% from the earnings per share of $1.24 that it reported during the same time of 2016. However, it came in well above Wall Streets’ earnings per share estimate of 96 cents for the quarter.
American Express’ revenue reported during the third quarter of 2016 was $7.77 billion. This is a 5% decrease from the revenue of $8.19 billion it reported during the third quarter of 2015. It also matched the $7.77 billion in revenue that analysts were expecting from it during the quarter.
Net income reported by American Express in the third quarter of 2016 was $1.1 billion. That is down 10% from the $1.3 billion in net income that it reported in the same time of 2015.
“While there’s more work and more challenges ahead, the investments we’re making are designed to position us for profitable, sustainable growth over the longer term, and we remain on track to earn at least $5.60 per share in 2017,” Kenneth I. Chenault, Chairman and CEO of American Express, said in a statement.
American Express also increased its earnings per share estimate for the year of 2016. It now expects earnings per share for the year to be between $5.90 to $6.00. Its previous estimate ranged from $5.40 to $5.70. Wall Street is looking for earnings per share of $5.51 for the full year of 2016.
AXP stock was up 9% as of Noon Thursday.
