American Express Company (AXP) significantly surpassed its year-ago performance while also eclipsing the Zacks Consensus Estimate in its fourth quarter.
After the bell marked another sharp selloff in the market, at which time AXP announced earnings per share of 59 cents, beating the Zacks Consensus Estimate of 56 cents by 5.4%. More dramatic was the year-over-year improvement of more than 180% from 21 cents (though the year-ago performance was unnaturally depressed).
This was AXP’s second straight quarter with better-than-expected EPS, and its third in the past four quarters.
Consolidated revenues net of interest expense rather flat from last year at $6.5 billion.
Some positives during the quarter included an 8% gain in cardmember spending and a 47% drop in consolidated provisions for losses.
Earnings estimates for AXP have been making slight advances of late. The Zacks Consensus Estimate for 2010 is $2.49 per share, which is up 9 cents in 30 days and 4 cents in 7 days. AXP is a Zacks #3 Rank (‘hold’) company.
Stay tuned for more in depth analysis on AXP’s quarter.
Read the full analyst report on “AXP”
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