American Express Surpasses Estimates & Q1 Highlights
American Express Company (AXP), and its subsidiaries provide customers and businesses globally with charge and credit payment card products and travel-related services. They look to enrich the lives of their customers and build business success.
American Express reported earnings of $1.86/share, up 38% from Q1 2017 and beating the estimates of $1.747. The company saw revenues rise 12% due to higher cardmember spending as well as loan growth. Total revenues net of interest expense were reported at $9.7 billion compared to $8.7 billion in Q1 2017.
Net Income was up 31% at $1.6 billion, consolidated expenses rose 9% to $6.9 billion, and operating expenses rose 5% from quarter one last year. The consolidated effective tax rate dropped to 22%, down 10% from a year ago.
“Our year is off to a good start with double-digit growth in billed business, revenues and earnings. Card Member spending grew 12 percent, and we acquired 3.5 million new cards across our global issuing business, reflecting in part the recent Hilton portfolio acquisition. Credit indicators are in line with our expectations, and the loan portfolio grew 16 percent.” -Stephen J. Squeri, chairman, and chief executive officer.