AmEx Earnings Beat, Revenue Is on Target
American Express reported higher-than-expected earnings and revenue that met analysts expectations on Wednesday as its customers spent more on their cards.
Shares of the credit-card provider initially rose but then slipped in after-hours trading. Get the latest after-hours quote for American Express here.
AmEx reported third-quarter earnings of $1.03 a share, an increase from 90 cents a year earlier.
Net income rose 13 percent to $1.24 billion from $1.1 billion a year ago.
Revenue for the most recent quarter rose 9 percent to $7.57 billion from $7.03 billion last year.
AmEx was expected to earn 96 cents a share on revenue of $7.58 billion, according to a consensus estimate from Thomson Reuters.
The New York company said card user spending rose 16 percent. Meanwhile, the company enjoyed the lowest rate of late payments and defaults on balances in the industry.
AmEx said its expenses rose 13 percent to $5.6 billion, reflecting higher rewards costs. The company cut its marketing and promotion costs to slow the rate of increase, an issue some analysts have raised as a concern.