AmEx profit beats as higher spending blunts partnership losses

Fanned out credit cards

Fanned out credit cards

The co-branded credit card relationship between American Express and Costco ended in June. After $0.27 actual earnings per share reported by Ellington Financial LLC for the previous quarter, Wall Street now forecasts 14.81% EPS growth. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

"We acquired 2.6 million new cards across our global issuing businesses during the quarter and continued to broaden our reach among millennials with an expanded merchant network and enhanced benefits and services to earn a greater share of their wallet". LLC now owns 339,914 shares of the payment services company's stock worth $20,654,000 after buying an additional 8,360 shares in the last quarter. Vetr downgraded American Express Company from a "hold" rating to a "sell" rating and set a $71.74 target price on the a report on Wednesday, December 21st.

American Express Company (NYSE:AXP) opened at 80.02 on Friday. Cubist Systematic Strategies Limited Liability Company stated it has 9,059 shares or 0.02% of all its holdings. Its 50-Day moving average was -3.70% and 200-Day moving average was 7.48%.

Beta factor of the stock stands at 1.17. American Express Company has a one year low of $57.15 and a one year high of $82.00. American Express Company also was the recipient of some unusual options trading on Wednesday. Traders bought 21,536 put options on the stock. This is an increase of approximately 418% compared to the typical daily volume of 4,154 put options.

"The results reflect numerous investments we've been making to grow the business, plus continued progress in reducing operating expenses", said American Express Chairman and CEO Kenneth Chenault.Removing Costco, AmEx had a relatively strong quarter.

Analysts polled by FactSet had expected earnings of $1.28 a share on sales of $7.8 billion. American Express Company had a return on equity of 33.49% and a net margin of 16.63%. In the first quarter, spending on rewards for card members increased by 6% compared to a year ago. Qualcomm's third-quarter profit guidance of 90 cents to $1.15 a share bracketed estimates of $1.09. The year-ago period included Costco-related revenues and expenses. The company has earned $1,237 million, or $1.34 a share in the quarter, compared with $1,426 million, or $1.45 a share for the same period past year. Shareholders of record on Friday, April 7th will be paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.60%. The ex-dividend date of this dividend is Wednesday, April 5th.

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In other news, Director John Joseph Brennan acquired 4,000 shares of American Express Company stock in a transaction dated Wednesday, February 22nd. Goldman Sachs Incorporated accumulated 377,519 shares or 0% of the stock. Following the completion of the sale, the insider now owns 52,903 shares in the company, valued at approximately $3,824,886.90. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Zurcher Kantonalbank Zurich Cantonalbank now owns 130,351 shares of the payment services company's stock worth $7,920,000 after buying an additional 5,817 shares in the last quarter. Following the transaction, the director now directly owns 4,000 shares in the company, valued at $318,960. The disclosure for this sale can be found here. N+1 Singer maintained the stock with "Corporate" rating in Wednesday, July 22 report.

Other large investors also recently added to or reduced their stakes in the company. Cox L Kevin also sold $4.26M worth of American Express Company (NYSE:AXP) shares. Non-interest income for the quarter fell 1.83 percent over the past year period to $6,389 million. Finally, Ngam Advisors L.P. boosted its position in shares of American Express Company by 11.9% in the second quarter.

American Express Company is a services company.