American Express CompanyNYSE
Today, 9:11 AM
- Discover (NYSE:DFS) and Synchrony Financial (NYSE:SYF) are likely to "meaningfully outperform" American Express (NYSE:AXP) over the next two years, says Bill Carcache, advising clients take advantage of the big post-election rally in AmEx to cash out and instead put the money in DFS and SYF.
- Carcache expects revenues per dollar of investment spending in Q4 to drop to "the lowest level AXP has ever seen in its existence as a public company."
- Expense cuts may be able to buy time in masking "fundamental degradation," says Carcache, but investors won't wait until expense leverage is gone to begin unloading the stock.
- Carcache rates AmEx a "reduce" with $63 price target (16% downside).
- Source: Bloomberg
Tue, Dec. 6, 12:05 PM
- While U.S. loan growth was down 13% Y/Y in Q3, adjusting for the Costco and JetBlue co-brand deals shows 13% growth vs. the industry average of 6%.
- Presentation slides
- As far as credit quality, the 1.4% adjusted write-off rate was flat from a year ago.
- Cardmember acquisitions aren't great: AmEx (AXP +0.6%) signed up 1.7M new members in Q3 - that's down from 2.3M signed in Q3 one year ago, and more than 2M signed up in each of Qs 4, 1, and 2. Chenault says the figure is trending lower in Q4.
- International business growth: Mexico +13% Y/Y, U.K. +14%, China +27%, Japan +14%.
- Digital progress: Digitally acquired cards up 20% Y/Y, with Millennials making up 40% of digital card acquisitions - new card members are on average five years younger than in 2010.
- Marketing spend is naturally nicely higher, with Q4 expected be well above the $930M spent in Q3. In 2015, the average quarterly spend was $777M.
- AXP +0.6%
Tue, Dec. 6, 8:24 AM
- InAuth, Inc. is a provider of mobile device authentication and intelligence solutions, whose technology is used by some of the largest financial institutions, banks, payment networks, and merchants.
- The purchase enhances American Express' (NYSE:AXP) comprehensive data analytics and fraud prevention capabilities.
- Earlier this year, American Express Ventures made an investment in InAuth.
- Terms of today's deal were not disclosed.
Tue, Dec. 6, 2:19 AM
- Top executives from the largest U.S. banks and asset managers are set to begin speaking at Goldman Sachs' U.S. Financial Services Conference.
- Those appearing at the event include CEOs of JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX) and American Express (NYSE:AXP).
- Wells Fargo's (NYSE:WFC) new CEO Tim Sloan, who took the top job in October after the bank's fake account scandal, will also take the podium.
Fri, Dec. 2, 11:02 AM
- Current Street consensus doesn't "fully appreciate" the company's increasing need to spend more to make less, says analyst Bill Carcache.
- He says a $1 investment today generates just $3 in net revenue vs. $8 in 2001.
- He retains his Reduce rating and cuts the price target to $63, suggesting nearly 13% downside.
- AXP -0.2%
Fri, Nov. 25, 7:14 AM
- The federal government is raising the allowable limit on some credit-card late fees, and American Express (NYSE:AXP) is the first big issuer to act on the updated guidelines.
- Starting in January, AmEx will charge customers as much as $38 if they are late on more than one payment in a six-month period.
- That's $1 more than the company's old highest fee, and it will put AmEx at the maximum allowed under the Consumer Financial Protection Bureau.
Tue, Nov. 22, 3:13 PM
Tue, Nov. 15, 12:49 PM
- Loans 30 days past due as a percent of total loans were 1.1% in October, flat from September's and August's levels.
- Net write-off rate of 1.6% was also flat from previous.
- The net write-off rate for small business card loans was 1.5% vs. 1.6% in both September and August.
- Total U.S. consumer and small business loans of $54.7B vs. $53.9B in September and $53.8B in August.
- SEC Form 8-K hosted on Seeking Alpha
- AXP -0.8% on the session.
Thu, Oct. 20, 1:42 PM
- CFRA's Erik Oja is using American Express' (AXP +10.4%) whopper of a move today to cash in his chips, downgrading to Hold from Buy, and cutting the price target to $68 from $70 (current is $67.68).
- AmEx's peers have a median forward P/E ratio of 11x and a P/E-to-growth (PEG) ratio of 1.7x. Using those numbers leads Oja to that $68 12-month target.
- "We think American Express executed well in Q3, but still see considerable competitive challenges."
Thu, Oct. 20, 12:59 PM
Thu, Oct. 20, 9:17 AM
Thu, Oct. 20, 7:18 AM
Wed, Oct. 19, 5:35 PM
Wed, Oct. 19, 4:55 PM
- 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
Wed, Oct. 19, 4:06 PM
Tue, Oct. 18, 5:35 PM