American Express Company (NYSE:AXP) reported on its third quarter of fiscal 2017, posting profit that topped the mark.
Earnings came in at $1.4 billion, 19% higher than the year-ago profit. On a per-share basis, American Express earned $1.50 for the period, rising 25% year-over-year and beating the consensus estimate of $1.48 per share, according to Thomson Reuters.
Revenue amounted to $8.44 billion, well ahead of Wall Street projections of $8.29 billion, per Thomson Reuters. The figure was 9% higher than the $7.8 billion from the year-ago quarter.
American Express said that the company will be launching a new card called Blue Delta SkyMiles that will help travelers rake in points that can be redeemed for hotels and flights, among other goodies. It is geared mostly towards new travelers, especially millennials.
Consolidated provisions for losses during the quarter were $769 million, a 53% increase from the $504 million from a year ago. The rise came thanks in large part to the strong growth in American Express’ loan portfolio, as well as an expected increase int he company’s lending write-off and delinquency rates.
“We are completing a two-year turnaround ahead of plan with strong revenue and earnings growth across all of our business segments,” said Kenneth I. Chenault, chairman and CEO of American Express. “We’ve added products and benefits, shown continued strength in acquiring new customers, and expanded our merchant network.
The company also bumped up its guidance for the fiscal year 2017, now between $5.80 and $5.90 per share. Analysts were previously forecasting earnings of $5.74 per share, according to Thomson Reuters.
AXP shares surged 0.4%, before falling 0.5% after hours Wednesday.
