American Express Co. (AXP) Posts Quarterly Earnings Results, Beats Expectations By $0.28 EPS
American Express Co. (NYSE:AXP) released its earnings results on Wednesday. The payment services company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.28. American Express had a return on equity of 28.00% and a net margin of 16.73%. The business earned $7.80 billion during the quarter, compared to the consensus estimate of $7.70 billion. During the same period last year, the company earned $1.24 earnings per share. The business’s revenue for the quarter was down 5.1% compared to the same quarter last year. American Express updated its FY16 guidance to $5.90-6.00 EPS and its FY17 guidance to at least $5.60 EPS.
American Express (NYSE:AXP) traded up 1.95% on Wednesday, reaching $61.25. The company had a trading volume of 7,392,733 shares. The company’s 50-day moving average is $63.58 and its 200-day moving average is $63.63. The company has a market capitalization of $56.58 billion, a PE ratio of 10.83 and a beta of 1.24. American Express has a 52-week low of $50.27 and a 52-week high of $77.61.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 10th. Investors of record on Friday, October 7th will be paid a $0.32 dividend. This is an increase from American Express’s previous quarterly dividend of $0.29. This represents a $1.28 annualized dividend and a yield of 2.09%. The ex-dividend date of this dividend is Wednesday, October 5th. American Express’s dividend payout ratio is currently 22.54%.
AXP has been the subject of several recent research reports. Vetr upgraded American Express from a “buy” rating to a “strong-buy” rating and set a $67.47 price objective for the company in a report on Monday, June 27th. Nomura downgraded American Express from a “neutral” rating to a “reduce” rating and decreased their price objective for the company from $62.00 to $56.00 in a report on Thursday, October 6th. Wells Fargo & Co. restated a “hold” rating and issued a $65.00 price objective on shares of American Express in a report on Sunday, July 10th. Credit Suisse Group AG restated a “sell” rating and issued a $62.00 price objective on shares of American Express in a report on Thursday, July 14th. Finally, Evercore ISI restated a “hold” rating on shares of American Express in a report on Saturday. Nine investment analysts have rated the stock with a sell rating, nineteen have given a hold rating and seven have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $68.04.
Institutional investors have recently modified their holdings of the company. Arvest Bank Trust Division boosted its position in shares of American Express by 0.4% in the second quarter. Arvest Bank Trust Division now owns 208,646 shares of the payment services company’s stock valued at $12,678,000 after buying an additional 817 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec boosted its position in shares of American Express by 16.5% in the second quarter. Caisse DE Depot ET Placement DU Quebec now owns 3,145,145 shares of the payment services company’s stock valued at $191,099,000 after buying an additional 446,100 shares in the last quarter. Point72 Asset Management L.P. purchased a new position in shares of American Express during the second quarter valued at about $3,038,000. National Asset Management Inc. boosted its position in shares of American Express by 19.2% in the second quarter. National Asset Management Inc. now owns 8,090 shares of the payment services company’s stock valued at $493,000 after buying an additional 1,303 shares in the last quarter. Finally, AHL Partners LLP purchased a new position in shares of American Express during the second quarter valued at about $364,000. 82.03% of the stock is owned by hedge funds and other institutional investors.
American Express Company Profile
American Express Company is a services company. The Company’s principal products and services are charge and credit payment card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include U.S. Consumer Services (USCS), International Consumer and Network Services (ICNS), Global Commercial Services (GCS) and Global Merchant Services (GMS).
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