American Express Company (AXP) - NYSE
  • Wed, Jul. 20, 4:20 PM
    • The headline is an earnings beat of $0.15, but it's not that impressive as this quarter's bottom line was helped by a $1.1B gain from the sale of the Costco portfolio, offset by a $232M restructuring charge (both pretax numbers). A check of the top line has revenues of $8.24B, about flat Y/Y, and missing estimates by $160M.
    • The quarterly dividend will be boosted by 10% to $0.32 per share following the CCAR, and $3.3B in repurchases are set for the next four quarters (after $2.8B YTD).
    • Worldwide billed business rose 3% Y/Y, or 8% when adjusting for Costco and forex.
    • U.S. Consumer Services revenue of $3.2B slipped 3% Y/Y, mostly thanks to Costco and an increase in cash rebate rewards. Provisions of $237M fell 2%.
    • International Consumer and Network Services net income of $228M up 18% Y/Y. Revenue of $1.4B up 6% (up 11% forex adjusted).
    • Global Commercial Services net income of $576M up 5% Y/Y. Global Merchant Services  net income of $373M up 1%.
    • CC at 5 ET
    • Previously: American Express beats by $0.15, misses on revenue (July 20)
    • AXP +2% after hours
    | Wed, Jul. 20, 4:20 PM | 2 Comments
  • Wed, Jul. 20, 4:08 PM
    • American Express (NYSE:AXP): Q2 EPS of $2.10 beats by $0.15.
    • Revenue of $8.24B (-0.5% Y/Y) misses by $160M.
    • Shares +0.8%.
    • Press Release
    | Wed, Jul. 20, 4:08 PM | 7 Comments
  • Tue, Jul. 19, 5:35 PM
  • Tue, Jul. 5, 10:19 AM
    • The new venture - Working Capital Terms - will approve loans in minutes for existing small-business cardholders. Amounts will range from $1K-$750K, with fees of 0.5% for a 30-day loan, up to 1.5% for a 90-day loan.
      “It’s a big opportunity for us to go into an area where businesses want to pay vendors that don’t accept any credit cards," says Susan Sobbott, AmEx's (AXP -2.3%) president of global commercial payments.
    • AmEx's edge, says former SBA head, now adviser to Working Capital Terms, Karen Mills, is its longstanding ties to small and mid-size U.S. businesses. "AmEx can do this because they have good credit knowledge."
    • On Deck Capital (ONDK -3.2%), Square (SQ -2.2%)
    | Tue, Jul. 5, 10:19 AM | 3 Comments
  • Wed, Jun. 29, 5:12 PM
    • American Express (NYSE:AXP) is approved for a rise in the quarterly dividend to $0.32 per share from $0.29 currently. Buybacks will up to $3.3B of common stock.
    • Shares +0.7% after hours
    | Wed, Jun. 29, 5:12 PM | 6 Comments
  • Thu, Jun. 23, 4:51 PM
    • Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
    • American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
    • Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
    • BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
    • BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
    • BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
    • BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
    • Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
    • Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
    • Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
    • Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
    • Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
    • Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
    • Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
    • HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
    • Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
    • JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
    • KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
    • M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
    • Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
    • Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
    • PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
    • Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
    • Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
    • State Street (NYSE:STT): 13%, 9.6%, 9.6%
    • SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
    • TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
    • U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
    • Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
    • Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
    • Previously: All 33 banks pass this year's stress tests (June 23)
    | Thu, Jun. 23, 4:51 PM | 59 Comments
  • Thu, Jun. 23, 8:57 AM
    • At issue appear to be lengthy wait times and trouble activating accounts for the new Costco Anywhere Visa Card from Citigroup (NYSE:C). The cards became available for use on Monday as Citi took over the Costco (NASDAQ:COST) portfolio from American Express (NYSE:AXP).
    • Costco's sales have slowed of late, with one reason possibly being "friction" from the credit-card switch, says Scott Mushkin from Wolfe Research.
    • Citi says it's issued 11M cards and had received 1.5M customer calls by late Wednesday, but also says call volumes are returning to normal.
    • Analysts are excited about the potential for lower costs at Costco. Morgan Stanley's Simeon Gutman figures 25% of Costco sales were made with AmEx, which carried a fee of 0.6%, costing the company $180M per year. With Visa, fees should fall to 0.1-0.4%, saving $60M-$150M annually.
    | Thu, Jun. 23, 8:57 AM | 38 Comments
  • Wed, Jun. 22, 7:23 AM
  • Tue, Jun. 14, 12:20 PM
    • In conjunction with CFO Brian Doubles' appearance at a conference this morning, the company said it expects a 20-30 basis point increase in net charge off rates over the next year.
    • BTIG's Mark Palmer notes Doubles says Synchrony (SYF -14.3%) continues to see the credit environment as "benign," though management anticipates "softening" in customers' ability to pay off balances. Palmer also says credit metrics currently are at unusually low (good) levels, and "normalization" should be expected at this point in the cycle.
    • There's also a positive catalyst on the horizon in the CCAR results, at which Palmer expects the initiation of buybacks and a dividend.
    • He reiterates his Buy rating, with $42 price target (60% upside) based off of 12.5x 2018 estimated EPS of $3.33.
    • Discover (DFS -3.1%), Capital One (COF -6%), American Express (AXP -3.9%), OneMain Holdings (OMF -7.3%), Santander Consumer (SC -5.5%), Ally Financial (ALLY -2.9%)
    | Tue, Jun. 14, 12:20 PM | 7 Comments
  • Tue, Jun. 14, 9:59 AM
    • Synchrony Financial is down more than 8% after warning of an increase in charge-off rates over the next year.
    • Capital One (COF -2.8%), Discover (DFS -1.1%), American Express (AXP -1.6%).
    • Releasing its monthly statistics, Discover says its net principal charge-off rate in May was 2.4%, down 10 basis points from April, but up from the cycle low of 1.9% from last July. The delinquency over the last 30 days was 1.6%, flat from April and from last summer.
    | Tue, Jun. 14, 9:59 AM | 4 Comments
  • Fri, Jun. 10, 6:15 PM
    • Wal-Mart (NYSE:WMT) says it will stop accepting Visa (NYSE:V) cards in Canadian stores after failing to agree on terms with the credit card company.
    • The move is the latest in a years-long battle between the two companies over fees and the right to steer customers to certain types of payments.
    • Visa is the largest payments network in Canada, with 50.6M cards in circulation and $232.6B worth of transactions last year.
    • WMT, which has 405 stores in Canada, says it will continue to accept MasterCard (NYSE:MA), American Express (NYSE:AXP), Discover (NYSE:DFS) and other cards.
    | Fri, Jun. 10, 6:15 PM | 89 Comments
  • Fri, May 20, 9:18 AM
    • U.S. credit card balances are on track to climb over $1T this year, closing in on the all-time high of $1.02T set just before things fell completely apart in 2008.
    • Slow, but steady economic growth, an improving job market, and lenders returning to offering credit to millions of subprime consumers are behind the numbers.
    • Lenders will take it where they can get it, as credit cards are one of the few areas working for banks right now, thanks to low margins on ordinary lending and a secular decline in trading profits. For now, delinquency rates are low, and profits are set to rise even more alongside Fed rate hikes.
    • Capital One's (NYSE:COF) strategy to boost card usage by raising spending limits and giving out new cards is paying off: The bank's customers spent 20% more on cards in Q1 this year than last. For Citigroup (NYSE:C), average balances posted their first Y/Y increase since 2008. Balances grew at Discover (NYSE:DFS) and JPMorgan (NYSE:JPM) as well.
    • Even American Express (NYSE:AXP), whose customers typically pay it all off every month, is now focusing on lending to those who will keep a balance.
    • Source: The WSJ's Annamaria Andriotis and Robin Sidel
    | Fri, May 20, 9:18 AM | 63 Comments
  • Tue, May 17, 10:36 AM
    • Viacom (VIA +1.1%, VIAB +1.1%) and American Express (AXP -0.9%) have teamed up on an exclusive TV advertising partnership drawing on predictive purchase intent.
    • The new offering will take its place in Viacom's Vantage product lineup as Vantage Intent, available for ongoing television upfront presentations.
    • AmEx will analyze the majority of the $1T in transactions on its network to develop predictive insights by population, and combine that data with Viacom's to create advanced audience segments.
    • The two announced the deal at Viacom's "Datafront."
    • Now read It's Time To Fire Philippe Dauman »
    | Tue, May 17, 10:36 AM | 2 Comments
  • Thu, May 12, 5:37 PM
    • Top gainers, as of 5.25 p.m.: AXP +11.7%. RUN +10.6%. KMPH +8.1%. TTM +7.8%. NVDA +6.8%.
    • Top losers, as of 5.25p.m.: CFMS -39.0%. TTPH -26.2%. JWN -16.2%. VJET -11.9%. SHAK -6.5%.
    | Thu, May 12, 5:37 PM | 15 Comments
  • Tue, May 3, 3:25 PM
    • American Express (NYSE:AXP) declares $0.29/share quarterly dividend, in line with previous.
    • Forward yield 1.79%
    • Payable Aug. 10; for shareholders of record July 1; ex-div June 29.
    | Tue, May 3, 3:25 PM | 1 Comment
  • Mon, May 2, 12:34 PM
    • "With a great sense of urgency," American Express (AXP +0.8%) is spending to attract cardholders and new retail partners, says CEO Ken Chenault, speaking at the annual meeting, and acknowledging a "disappointing" 2015 for his company's investors.
    • Presentation slides
    • Over the weekend and again this morning, Chenault and team got a vote of confidence from Warren Buffett (Berkshire Hathaway is the company's largest shareholder), who said he agrees with the decision to walk away from the Costco partnership, painful as it was. Charlie Munger, however, took issue, and said AmEx should have done whatever it took to hold onto Costco.
    | Mon, May 2, 12:34 PM | 13 Comments
Company Description
American Express Co. is a global payments and travel company. The company, through its subsidiaries, offers products and services, including charge and credit payment card products and travel-related services to consumers and businesses around the world. American Express operates through four... More
Sector: Financial
Industry: Mortgage Investment
Country: United States