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American Express earnings beat, but revenue falls short of expectations

Wednesday, 17 Jul 2013 | 6:01 PM ET
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American Express beat Wall Street earnings expectations for the second quarter, as the credit card company's members spent more.

The company reported net income of $1.27 per share on revenue of $8.25 billion. Analysts had expected it to report earnings excluding items of $1.22 a share on $8.28 billion in revenue, according to a consensus estimate from Thomson Reuters.

Loss provisions rose 29 percent from a year earlier, to $561 million. The company said it had a lower level of write-offs, but it also drew down less from past reserves.

U.S. Card Services reported second-quarter net income of $743 million, up 3 percent from $718 million a year ago. However, return on equity fell 3 percentage points in the quarter to 23.6 percent.

"We generated record bottom-line results this quarter, despite an uneven global economy," Chairman and CEO Kenneth Chenault said in a statement. "Cardmember spending grew by 7 percent [8 percent adjusted for foreign currency translations], with broad-based gains throughout the business both here in the U.S. and internationally," Chenault said.

Following the earnings announcement, shares of the company's stock slipped in after-hours trading, last down 1 percent at $76.00.

What is American Express stock doing now? (Click here for the latest after-hours quote.)

—By CNBC

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