Free Annual Reports
American Express Third Quarter Earnings
Tickers in this Article »
AXP
American Express Company (NYSE:AXP) announced its results for the third quarter on October 17, 2012. American Express is a global payments, network, and travel company that offers credit card products and travel-related services to consumers and businesses on an international scale.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: American Express announced EPS of $1.06 per share versus the $1.09 per share estimate. EPS rose 2.9% while revenue declined 3.5% from the same period last year. American Express' net income for the third quarter was $1.25 billion, a 1.2% increase from last year. Last quarter marked the third in a row of rising net income.
Management Quote: "We generated solid results this quarter against the backdrop of a very uneven global economy," said Kenneth I. Chenault, chairman and chief executive officer. "Bottom line results were driven by higher revenues and lower expenses, a combination that reflects ongoing efforts to contain operating costs while maintaining a substantial level of investment in our marketing and rewards programs."
A Look Back: Net income has increased 6.8% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 13% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.09 a share to $1.10 over the last 60 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. For the fiscal year, the average estimate has moved up from $4.33 a share to $4.39 over the last thirty days.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: American Express announced EPS of $1.06 per share versus the $1.09 per share estimate. EPS rose 2.9% while revenue declined 3.5% from the same period last year. American Express' net income for the third quarter was $1.25 billion, a 1.2% increase from last year. Last quarter marked the third in a row of rising net income.
Management Quote: "We generated solid results this quarter against the backdrop of a very uneven global economy," said Kenneth I. Chenault, chairman and chief executive officer. "Bottom line results were driven by higher revenues and lower expenses, a combination that reflects ongoing efforts to contain operating costs while maintaining a substantial level of investment in our marketing and rewards programs."
A Look Back: Net income has increased 6.8% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 13% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.09 a share to $1.10 over the last 60 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. For the fiscal year, the average estimate has moved up from $4.33 a share to $4.39 over the last thirty days.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
