Seeking Alpha

American Express Company (AXP)

  • Tue, Mar. 3, 7:36 AM
    • Citing a number of catalysts - the rescheduling of the company investor day, that settling the antitrust lawsuit will be difficult, and the chance of a negative CCAR result - Macquarie downgrades American Express (NYSE:AXP) to Underperform. The price target is cut to $76 from $81.
    • Shares -0.15% premarket
  • Mon, Mar. 2, 8:13 AM
    • Citigroup (NYSE:C) will become the exclusive co-issuer of Costco's (NASDAQ:COST) co-brand credit cards, and Visa (NYSE:V) will replace American Express (NYSE:AXP) as the credit card network for Costco in the U.S. and Puerto Rico, beginning April 1, 2016.
    • On CNBC as the news hit, AmEx shareholder Warren Buffett: Citi won't get rich off the Costco deal.
    • Source: Press Release
    • +0.6%, V +2.4% premarket
  • Mon, Mar. 2, 7:48 AM
    • "When Charlie's letter came in and it referenced Greg and Ajit, it was news to me that he was writing that," Warren Buffett tells CNBC after this weekend's annual investor letters ratcheted up speculation Greg Abel and Ajit Jain were first in line to be the next chiefs at Berkshire Hathaway (BRK.A, BRK.B). There's "no jockeying" at all going on between the two, he says.
    • Minimum wage: We could afford to pay $20 nationwide, but there'd be a lot of people without jobs. It "distorts the market."
    • IBM: "People have this misconception that - when we buy a stock - we want it to go up. That's the last thing we want it to do ... There's been no surprises at IBM since we started buying it a few years ago ... We expected revenue to come down."
    • AXP - The company has a strong position in its antitrust lawsuit (which it just lost, but plans to appeal). The partnership with Costco ended when the two couldn't come to terms.
    • Previously: Buffett, Munger talk succession and more in annual letters (Feb. 28)
  • Thu, Feb. 26, 2:27 PM
    • "We believe the company will be able to restore its earnings power sooner than expected,' says Deutsche's David Ho in his AmEx (AXP +1.2%) upgrade, noting management now has "breathing room" to manage earnings expectations this year given a "minimal" revenue drag from Costco and efficiency gains coming online in H2.
    • AmEx, he says, also has the largest amount of excess capital among consumer finance stocks, giving the company ample room to deploy capital to new partnerships, acquisitions, and eventually higher dividends and buybacks.
    • Finally, at 13.7x 2016 estimates, American Express is being valued at a 30-35% discount to Visa and MasterCard.
    • Previously: American Express up 1% as Deutsche buys the dip (Feb. 26)
    | Comment!
  • Thu, Feb. 26, 8:41 AM
  • Wed, Feb. 25, 7:20 AM
    • According to Bloomberg, more than 1M cardholders will see their annualized rates rise an average of 250 basis points to at least 12.99%.
    • The cardholders were notified by AXP after a review last year found credit card rivals charging more to borrowers "with similar credit profiles."
  • Thu, Feb. 19, 12:07 PM
    • "The court's ruling will not provide any benefit to consumers and will, in fact, harm competition by further entrenching the two dominant networks," says American Express (AXP -2.2%), responding to its loss in an antitrust lawsuit, and vowing to appeal.
    • Filed in 2010 and heard by a federal judge last year, the case is about AmEx's prohibiting merchants who accept its cards from steering customers towards those cards processed by rivals Visa (V +0.3%) and MasterCard (MA +1.7%), or debit cards.
    • “The most damaging thing that can happen to the American Express brand is when our card members are discriminated against at the point of sale,” said company CEO Ken Chenault when he testified at last year's trial.
    • It's another 2015 blow for AmEx which last week announced an end to its long-time exclusive partnership with Costco in the U.S. The stock's now lower by about 16% YTD.
    • Previously: AmEx lower by 1.9% after losing antitrust suit (Feb. 19)
  • Thu, Feb. 19, 10:32 AM
    • A federal judge rules American Express (AXP -1.9%) violated antitrust laws in a case brought by the DOJ and a number of states alleging the company set rules preventing merchants from offering discounts/incentives to customers using less expensive forms of payment.
    • Previously: AmEx to face antitrust lawsuit (July 4, 2014)
  • Fri, Feb. 13, 4:32 PM
    • Fresh off news that its agreement with Costco (NASDAQ:COST) is coming to an end, American Express (NYSE:AXP) is also splitting with JetBlue (NASDAQ:JBLU) as the airline has reportedly reached a new credit-card deal with Barclays (NYSE:BCS) and MasterCard (NYSE:MA).
    • The change ends a credit-card partnership that started in 2005. AXP's pact with Costco has lasted 16 years.
    • Airline deals are generally desirable for card issuers as annual fees are more likely and travel awards can spur spneding.
    • After hours, AXP down just 0.1%; MA +0.1%; BCS +0.2%.
    • Previously: Analysts weigh in on American Express after Costco loss (Feb. 13 2015)
  • Fri, Feb. 13, 1:05 PM
    • Banks are getting the worse end of the deal in co-branding partnerships with major retailers, say banking officials.
    • Margins have shrunk on co-branded programs for major card issuers and processors such as Capital One (NYSE:COF), Wells Fargo (NYSE:WFC), American Express (NYSE:AXP), Visa (NYSE:V), and MasterCard (NYSE:MA) with retailers playing banks off against one another in order to score better terms.
    • Earlier this week, American Express announced it would end its co-branded card with Costco.
  • Fri, Feb. 13, 7:28 AM
    • Morgan Stanley recommends buying the dip on American Express (NYSE:AXP) after the company's loss of a co-branding deal with Costco sparked a sell-off yesterday.
    • American Express can cut some of their losses through the sale of its customer list and retains current loans, notes MS.
    • Other firms are honing in on the lost revenue from the Costco business in adjusting earnings estimates.
    • RBC Capital moves its price target on the credit card giant to $74 from $79.
    • FBR Capital takes its PT to $87 from $92.
    • Credit Suisse back its Underperform rating on AXP and takes its PT to $78 on a view for EPS to hit $5.35 in 2015.
    • Previously: AmEx down 6% on scrapping of Costco exclusivity (Feb. 12)
    • AXP -0.3% premarket.
  • Thu, Feb. 12, 2:43 PM
  • Thu, Feb. 12, 12:30 PM
    • American Express' (AXP -6%) Costco relationship accounted for 8% of AmEx's billed business, 20% of worldwide loans, and 10% of cards in force, says Jefferies' John Hecht, so this isn't a minor loss.
    • Hecht expects EPS growth this year will now be down-to-flat. Beyond 2016, AmEx management expects recent investments and initiatives to allow a return to 12-15% EPS growth. There's also the transfers of merchant agreements which could result in a portfolio sale and one-time gain.
    • Previously: AmEx and Costco ending U.S. partnership next year (Feb. 12)
  • Thu, Feb. 12, 9:15 AM
  • Thu, Feb. 12, 8:02 AM
    • "We were unable to reach terms that would have made economic sense for our company and shareholders," says American Express (NYSE:AXP) CEO Ken Chenault, announcing an end to his company's exclusive relationship with Costco (NASDAQ:COST), effective March 31, 2016.
    • Source: Press Release
    • AmEx has set a conference call to discuss the matter at 8:30 ET.
    • Shares -1.8% premarket
    • The two parted ways in Canada on Jan. 1.
  • Tue, Jan. 27, 4:08 PM
    • American Express (NYSE:AXP) follows MasterCard which last week said it would allow U.S.-issued cards to be used in Cuba beginning on March 1 (AmEx didn't set a date). Visa hasn't yet revealed its plans.
    • Source: Reuters
    | Comment!
Visit Seeking Alpha's
AXP vs. ETF Alternatives
Company Description
American Express Co is a payments, network and travel company, which offers credit payment card products and travel-related services to consumers and businesses.
Sector: Financial
Country: United States