AmEx Results Beat Expectations; Shares Gain


American Express reported sales and profit that topped what analysts were expecting Wednesday, sending shares higher in after-hours trading.

The credit-card provider reported second-quarter earnings of $1.07 a share. AmEx earned 84 cents a share during the same period a year earlier.

American Express
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Sales for the most recent quarter rose to $7.6 billion, up from $6.86 billion last year.

The company was seen earning 99 cents a share on revenue of $7.35 billion, according to a consensus estimate from Thomson Reuters.

Shares of AmEx gained in extended trading Wednesday. Get real-time quotes for American Express here.

The stock closed at $52.10 in the regular New York Stock Exchange session. Volume exceeded 6.5 million shares before the closing bell.

Earlier, a federal court judge approved a settlement between the Justice Department and MasterCard and Visa that requires the card processing networks to allow retailers to offer discounts or rebates to customers for using a particular kind of card.

However, AmEx refused to settle, vowing to wage a multiyear fight on the grounds that the deal would promote steering customers from one payment network to another without enhancing competition.

In the meantime, AmEx introduced a new digital payment and commerce platform in March called Serve, which offers person-to-person, online, mobile and traditional card capabilities in a single account.