How AXP’s US Business Continues to Be Challenging in 4Q16
American Express’s (AXP) US Card Services segment has seen difficult times over the past year due to dwindling partnerships and increased competition on the cost front.
American Express’s International Card Services segment has seen strength over the past few quarters as the company has sought to diversify its revenue and clientele globally.
For 2016, American Express expects its EPS (earnings per share), excluding restructuring charges, to be $5.90–$6.00, translating to a PE (price-to-earnings) ratio of 13.7x.
American Express’s (AXP) Global Network and Merchant Services segment manages a payment network that processes nonproprietary and proprietary card transactions.
American Express’s performance has been volatile over the past few quarters, mainly due to its non-renewal of partnerships and rising competition from major US players.
American Express’s (AXP) Global Commercial Services (or GCS) segment provides global corporate payment services and travel services.
American Express (AXP) is expected to post earnings per share (or EPS) of $0.98 in 4Q16, compared to $1.23 in the previous year’s quarter.
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