American Express +5.2% on Q3 beat, raised full-year guidance

|About: American Express Company (AXP)|By:, SA News Editor

American Express (AXP +2%) has picked up 5.2% after hours following Q3 earnings where it soundly beat profit expectations and raised full-year guidance as it embraced the loss of Costco business.

EPS dropped 3% in headline terms; excluding a charge for restructuring, it was exactly flat Y/Y at $1.24.

It now expects GAAP EPS for the full year of $5.65-$5.75, and adjusted EPS of $5.90-$6.00 (above consensus for $5.60).

Excluding the year-ago impact of Costco, adjusted revenues grew 5% as cardmember spending rose, as did net interest income and net card fees. Revenues fell 5.1% on an unadjusted basis.

Effective tax rate for the quarter was 34% vs. a year-ago 35%. Return on equity came to 26%, down from a year-ago 27%.

Conference call to come at 5 p.m. ET.

Press Release