American Express Earnings: AXP Stock Wobbles Despite Q3 Beat

American Express (NYSE:AXP) earnings for the payment card company’s third quarter of 2019 sent AXP stock lower Friday. This is despite its adjusted earnings per share of $2.08 for the quarter, which beats Wall Street’s estimate of $2.03. Revenue of $10.98 billion also surpasses analysts’ estimate of $10.94 billion for the period.

American Express Earnings: AXP Stock Dips 1% Despite Q3 Beat

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Here are the highlights from AXP’s earnings report:

  • Adjusted EPS is up 10% from $1.88 in the third quarter of 2018.
  • Revenue is 8% higher YoY than $10.14 billion.
  • The American Express earnings report also includes a net income of $1.76 billion.
  • That’s a 3% increase over its net income of $1.65 billion from the same time last year.

Steve Squeri, Chairman and CEO of American Express, says this about the AXP stock earnings report:

“The trends we saw in the business this quarter continue to be consistent with an economy that continues to grow, albeit at a more modest pace than last year. FX-adjusted proprietary Card Member spending rose 7 percent, led by strong consumer growth in both the U.S. and International markets. Our loan portfolio grew 9 percent, with over 60 percent of that growth again coming from existing Card Members. Credit quality metrics remained at industry-leading levels.”

Despite American Express earnings beating out estimates for the third quarter of 2019, the company isn’t updating its outlook for the full year of 2019. It continues to expect adjusted per-share earnings ranging from $7.85 to $8.35. This has the midpoint of $8.10 below Wall Street’s estimate of $8.12.

AXP stock was down 1.25% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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