American Express Company (NYSE: AXP) on Friday reported better-than-expected results for its fiscal first quarter. Shares still slid roughly 2.0% this morning.
Key takeaways from AMEX Q1 results
Net income printed at $2.10 billion versus the year-ago figure of $2.24 billion.Per-share earnings stood at $2.73, a marginal decline from last year’s $2.74.Revenue net of interest expense was up 29% YoY to $11.74 billion.FactSet consensus was for $2.40 of EPS on $11.62 billion in revenue.Card member spending increased 35% globally; 121% on travel and entertainment.
Total network volumes grew 30%, hitting an all-time high in March. Other notable figures in the earnings press release include consolidated expenses up 34% and $33 million of provisions for credit losses versus $675 million a year-ago.
Jim Cramer reacts to the AMEX Q1 results
For the full financial year, American Express forecasts its per-share earnings to fall between $9.25 and $9.65 on 18% to 20% increase in revenue. Commenting on the price action on Friday, CNBC’s Jim Cramer said on “Squawk on the Street”:
Millennials and Gen X love the cards. I thought it was a remarkable quarter. One of the best. Retention is incredible. Number of bad loans incredibly small. Billings are way up. So, people are just too negative and they don’t even bother reading the earnings report.
AMEX is set to host its annual meeting of shareholders on May 3rd. The stock is up nearly 10% for the year.
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