American Express (NYSE:AXP) reported third-quarter earnings of $2.08 per share, which beat the analyst consensus estimate of $2.03 by 2.46%. This is a 10.64% increase over earnings of $1.88 per share from the same period last year.
The company reported quarterly sales of $11 billion, which beat the analyst consensus estimate of $10.95 billion by 0.46%. This is an 8.4% increase over sales of $10.144 billion the same period last year.
Third-quarter consolidated total revenues net of interest expense were $11.0 billion, up 8% from $10.1 billion a year ago. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 9%. The increases reflected higher Card Member spending, net interest income and card fees.
Consolidated expenses were $7.8 billion, up 9% from $7.2 billion a year ago. The rise reflected, in part, growth in rewards and other customer engagement costs driven by increased Card Member spending and continued investments in co-brand partnerships. Operating expenses were up 5% from a year ago, driven by salaries and employee benefits
Said CEO Steve Squeri, "Our results continued the steady performance we've been delivering for several years now, marking the ninth straight quarter of FX-adjusted revenue growth of at least 8%.
"I'm pleased with the breadth and consistency of our revenue growth, driven by a well-balanced mix of card member spending, loans and membership revenues from our fee-based products, which grew 19% and exceeded $1 billion this quarter for the first time."
Shares docked $1.61, or 1.4%, to $117.49
