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
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, 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.
Thu, May 12, 5:37 PM
Thu, Apr. 21, 10:24 AM
- Last night's beat was thanks to lower expenses, as revenues came in a little light, says Bernstein's Kevin St. Pierre, reiterating his Buy rating and $77 price target. He thinks 12% EPS growth will be achievable beyond 2017 as the company returns to "6-4-3" - that is 6% revenue growth, 4% (or less) expense growth, and 3% (or more) share repurchases.
- Seeing a lack of clarity of 2017, Nomura's Bill Carcache reiterates his Neutral rating, but boosts the PT to $62.
- Jefferies reiterates its Hold, and lifts the PT to $60 from $58. Piper reiterates its Neutral rating and lifts the PT to $71 from $66.
- Compass Point keeps its Buy rating and hikes the PT to $74 from $69.
- AXP +1% to $65.67.
- Now read: American Express: Caution Is Still Warranted (April 21)
Wed, Apr. 20, 5:37 PM
Wed, Apr. 20, 4:15 PM
Mon, Mar. 7, 4:22 PM
- American Express (NYSE:AXP) had an interesting last hour of the session, rallying from about $58.30 to $59.40, before closing up 1.2% for the day at $59.
- Moving the stock was a report from Charlie Gasparino that insiders at the company say CEO Ken Chenault is on thin ice.
- The company is holding an investor day on Thursday.
Mon, Feb. 29, 8:37 AM
Fri, Jan. 22, 12:44 PM
Fri, Jan. 22, 12:23 PM| Fri, Jan. 22, 12:23 PM | 20 Comments
Fri, Jan. 22, 9:21 AM
Fri, Jan. 22, 8:44 AM
- While 2016's guidance was above forecasts, it includes an expected $1B gain from the sale of the Costco portfolio. Stripping this out implies weaker-than-hoped underlying growth, says Argus Research's Stephen Biggar.
- Nomura's Bill Carcache figures the Costco gain adds about $0.66 per share to the $5.40-$5.70 2016 EPS outlook.
- KBW throws in the towel, downgrading to Market Perform from Outperform. Jeferies remains on the sidelines, but cuts its price target to $58 from $70.
- UBS - which rates AmEx (NYSE:AXP) a Sell - cuts the price target to $54 from $67.
- Credit Suisse, Susquehanna, and RBC Capital join in the price target cuts.
- Shares -6% premarket to $58.97
- Previously: AmEx lower after earnings beat and guidance (Jan. 21)
Oct. 26, 2015, 9:12 AM
- "We simply do not see the company achieving its long-term guidance any time in the next several years," says UBS, downgrading American Express (NYSE:AXP) to Sell and lowering the price target to a Street-low $67 from $81.
- Said long-term guidance is for 12-15% EPS growth, and AmEx has promised it can return to that by 2017, but UBS sees just 8% growth between 2017 and 2019.
- UBS's Evidence Lab Survey doesn't bode well, says the bank, which now expects AmEx to lose 8% of its cardmembers following the Costco split in March vs. its previous estimate of just 2.5%. AmEx is also expected to lose 18% of its card portfolio.
- via Notable Calls
- Shares -1.6% to $73.37.
- Previously: American Express punished after weak quarter (Oct. 22)
Oct. 22, 2015, 10:01 AM
- Credit Suisse's Moshe Orenbuch reiterates his Underperform rating and cuts his price target to $71 from $74. He cuts his 2015 EPS estimate to $5.28 from $5.42, 2016 to $5.34 from $5.40, and 2017 to $5.75 from $6.
- AXP -6.5% to $71.51
- Speaking on the earnings call (transcript), CFO Jeff Campbell says U.S. transactions were up 7% Y/Y, but the average transaction size was lower by 3%, with the big slide in gasoline prices being a key driver. Airline spend was also down 3% Y/Y.
- There hasn't yet been significant earnings impact from Costco as lower volume growth has been offset by reduced marketing expenses associated with the co-brand portfolio. He offered no comment on the Costco portfolio sale discussions with Citi.
- Previously: AmEx dips after earnings miss (Oct. 21)
- Previously: American Express misses by $0.07, misses on revenue (Oct. 21)
Oct. 21, 2015, 4:18 PM
- Q3 net income of $1.266B or $1.24 per share vs. $1.477B and $1.40 one year ago. Float of 997M shares down from 1.047B. ROE of 26.8 down 200 basis points. Revenue of $8.193B down 1%.
- On an FX-adjusted basis, expenses were up 7% from a year ago as the company spent money on growth initiatives in the wake of the Costco loss.
- CEO: Ken Chenault: "We continue to expect quarterly earnings performance to be more uneven than it has been historically."
- Full-year EPS guidance is cut to $5.20-$5.35. Positive growth is expected to return in 2016, and the target range of 12-15% growth in 2017 "remains appropriate."
- U.S. Card Services income of $794M down 11% Y/Y on revenue of $4.7B, up 5%. Provisions of $390M up 23%, as reserves were added to this Q3 vs. a release in Q3 a year ago. Total expenses up 11% to $3.1B.
- International Card Services income of $89M down 37%, mostly due to King Dollar. Revenues fell 11% to $1.2B, but gained 4% on n FX-adjusted basis. Expenses gained 4% on an FX-adjusted basis.
- Global Commercial Services income of $151M down 26% Y/Y, on revenue of $817M down 9% (down 5% FX-adjusted).
- Global Network & Merchant Services income of $462M up 8%.
- Conference call at 5 ET
- Previously: American Express misses by $0.07, misses on revenue (Oct. 21)
- AXP -2.8% after hours
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
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