American Express CompanyNYSE
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
Mon, Oct. 17, 9:52 AM
- Customers of offerings like JPMorgan's (NYSE:JPM) Sapphire Reserve card can't believe their good fortune, but bank shareholders can't be faulted for wondering whether there's going to be any profits from the growing rewards war.
- "You have five or six big national players and they are going around killing one another," says Oppenheimer's Chris Kotowski.
- It's the banking version of a loss leader. The upfront rewards are well above the annual fee, but if customers hold onto the card after the first year, and better yet hold a balance, they could become profitable.
- "It has been a huge success," says the bank's card boss, Kevin Watters. Speaking on Friday's earnings call, CFO Marianne Lake declined to say how much card debt customers need to take on before a profit can be turned.
- Citigroup's (NYSE:C) spending on cards has also been aggressive, but personal finance gurus say its Prestige premium card needs to up its rewards game to compete with JPMorgan's offering.
- Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) also naturally want to boost card business, but until now have mostly refrained from joining the war, and earlier this month, American Express (NYSE:AXP) boosted rewards on its Platinum card, though saying publicly the move wasn't in response to JPMorgan and Citi.
Thu, Oct. 13, 2:40 PM
- "Credit card rewards continue to spiral skywards," says Evercore ISI's David Togut, putting American Express (AXP -0.5%) in the tough spot of either matching MasterCard (MA -0.6%) and Visa (V -0.4%) and seeing returns decline, or standing its ground and losing business.
- Chase's Sapphire Reserve card and Citi's Prestige card currently offer better rewards than AmEx's Platinum card, notes Togut. If AmEx wants to match, it will have to be more aggressive in cutting costs if it doesn't want to slash earnings guidance.
- AmEx may be trading at just 11x earnings vs. its historical 14x, but Togut suggests it's a value trap. He's staying on the sidelines.
Thu, Oct. 6, 7:16 AM
- A combination of softer-than-hoped revenues and higher-than-expected expenses isn't a good thing, says analyst Bill Carcache, downgrading American Express (NYSE:AXP) to Reduce from Neutral. He notes Q3 will be the first in which company results will exclude Costco business.
- The "tug of war between bulls and bears [will] intensify" in Q3, he says, and 2016 will likely end up marking year four of market share losses in U.S. billings.
- The new price target of $56 is down from $62 and suggests 13% downside from last night's close.
- Shares -0.6% premarket
Tue, Sep. 27, 10:43 AM