American Express Has Strong 3Q17 Results: Raises Earnings Target
AXP beat estimates
American Express (AXP) posted EPS (earnings per share) of $1.50 for 3Q17, which beat Wall Street’s estimate of $1.48. The company also beat analysts’ estimate for revenue. It reported ~$8.4 billion in revenue compared to analysts’ estimate of ~$8.3 billion.
Interested in AXP? Don't miss the next report.
Receive e-mail alerts for new research on AXP
AXP’s 3Q17 revenues reflect a 9.0% rise on a YoY (year-over-year) basis. The rise was seen as a result of cardmember spending. A rise in the company’s net interest income also contributed to the rise in 3Q17 revenues.
American Express has also witnessed a substantial rise in its net income, from $1.1 billion in 3Q16 to $1.4 billion in 3Q17, a 19.0% increase. In its 3Q17 earnings call, Kenneth Chenault, the company’s current CEO (chief executive officer), announced that on February 1, 2018, Stephen Squeri will become the company’s new CEO. Chenault plans to retire when Squeri takes over.
American Express has also raised its 2017 EPS target to $5.80–$5.90, which could attract investor attention.