Sunday, October 21, 2012

American Express Sees Higher Profit in Q3;Reported Increase in Credit Card Spending (AXP)

Global service company, American Express Company(AXP) on Thursday reported higher earnings for their third quarter.

The New York based company announced that their third quarter revenue increased by 4 percent from $7.57 billion to $7.87 billion, and their net income rose by one percent.

The company reported profit of $1.25 billion, or $1.09 a share, compared with $1.24, or $1.03 a share from last year's third quarter. Analysts had predicted sales of $7.9 billion, or $1.09 per share.

The increase in revenue is a result of lower expenses and increased credit card spending by their customers. Spending by the company's customers increased by 8% during the July to September period, compared to same period of time last year. Global spending increased by 6%.

American Express shares were down 67 cents, or 1.13% during premarket trading Thursday.

The Bottom Line

American Express Company(AXP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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