American Express (AXP) Issues Earnings Results, Beats Estimates By $0.11 EPS

American Express (NYSE:AXP) announced its quarterly earnings results on Thursday. The payment services company reported $1.88 EPS for the quarter, beating analysts’ consensus estimates of $1.77 by $0.11, RTT News reports. American Express had a return on equity of 30.08% and a net margin of 9.23%. The company had revenue of $10.14 billion during the quarter, compared to analyst estimates of $10.06 billion. During the same period in the prior year, the company earned $1.50 earnings per share. The firm’s revenue was up 9.2% on a year-over-year basis. American Express updated its FY18 guidance to $7.30-7.40 EPS.

NYSE:AXP opened at $102.84 on Friday. The company has a market capitalization of $89.84 billion, a PE ratio of 17.52, a P/E/G ratio of 1.43 and a beta of 1.17. American Express has a 1 year low of $87.54 and a 1 year high of $111.77. The company has a debt-to-equity ratio of 2.67, a current ratio of 1.92 and a quick ratio of 1.92.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 9th. Stockholders of record on Friday, October 5th will be paid a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 1.52%. This is a positive change from American Express’s previous quarterly dividend of $0.35. The ex-dividend date is Thursday, October 4th. American Express’s dividend payout ratio (DPR) is presently 26.58%.

A number of equities analysts recently commented on the company. UBS Group raised American Express from a “hold” rating to a “buy” rating in a research note on Friday, July 20th. Oppenheimer set a $113.00 price target on American Express and gave the company a “buy” rating in a research note on Wednesday, July 18th. DZ Bank raised American Express from a “hold” rating to a “buy” rating in a research note on Friday, July 20th. Stephens raised American Express from an “equal weight” rating to an “overweight” rating and set a $110.50 price target for the company in a research note on Monday, September 17th. Finally, BMO Capital Markets increased their price target on American Express from $103.00 to $106.00 and gave the company a “market perform” rating in a research note on Thursday, July 19th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and sixteen have given a buy rating to the company. American Express presently has an average rating of “Buy” and an average target price of $110.02.

In other news, CFO Jeffrey C. Campbell sold 9,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 1st. The stock was sold at an average price of $99.73, for a total value of $897,570.00. Following the completion of the sale, the chief financial officer now directly owns 66,568 shares of the company’s stock, valued at approximately $6,638,826.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Ventures Fund Vii L.P. Vivo purchased 20,142,123 shares of the firm’s stock in a transaction that occurred on Thursday, August 30th. The shares were acquired at an average cost of $0.17 per share, with a total value of $3,424,160.91. The disclosure for this purchase can be found here. Insiders sold a total of 47,448 shares of company stock valued at $4,942,168 over the last ninety days. Corporate insiders own 0.20% of the company’s stock.

American Express announced that its board has initiated a stock repurchase plan on Thursday, June 28th that authorizes the company to repurchase $3.40 billion in shares. This repurchase authorization authorizes the payment services company to purchase up to 4.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

American Express Company Profile

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.

Further Reading: Closed-End Mutual Funds (CEFs)

Earnings History for American Express (NYSE:AXP)

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