American Express Co. (AXP - Analyst Report) just released its third quarter fiscal 2016 financial results, posting adjusted diluted earnings of $1.24 and revenue of $7.8 billion. AXP is a Zacks Rank #3 (Hold), and is up over 4% to $63.71 per share in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company posted earnings of $1.24 per share, soaring past the Zacks Consensus Estimate of 96 cents per share. This number excludes a restructuring charge related to cost reduction efforts.
Beat revenue estimates. The company saw revenue figures of $7.8 billion, also beating our consensus estimate of $7.665 billion but falling 5% year-over-year.
Q3 net income was $41.1 billion, down 10% from the year ago period.
It should be noted that credit quality remained strong, and AmEx returned a substantial amount of capital to shareholders through share repurchases and dividends. Year-ago results included business related to the company’s relationship with Costco that ended earlier this year.
As a result, American Express has raised its 2016 earnings guidance, and remain on track to report at least $5.60 per share in 2017. The company now expects GAAP EPS for 2016 to be between $5.65 and $5.75 per share, while adjusted EPS should fall in the range of $5.90-$6.00 per share, well above previous estimates of $5.40-$5.70 per share.
Here’s a graph that looks at American Express’ price, consensus, and EPS surprise:
American Express Company is primarily engaged in providing travel related services, financial advisory services, and international banking services throughout the world. American Express Travel Related Services Company, Inc. provides a variety of products and services, including global networking services, the American Express Card, the Optima Card, and other consumer and corporate lending products and stored value products.
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