Stock Monitor: CIT Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free earnings report on American Express Co. (NYSE: AXP) ("AmEx"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AXP. The Company reported its financial results on April 18, 2018, for the first quarter of the fiscal year 2018 ended March 31, 2018. The Company surpassed analysts' consensus estimates for earnings and revenues in Q1 FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for CIT Group Inc. (NYSE: CIT), which also belongs to the Financial sector as the Company American Express. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Express most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For Q1 FY18 , AmEx's total revenues, net of interest expenses, reached $9.72 billion, reflecting an increase of 11.59% from $8.71 billion in Q1 FY17, driven by higher card member spending and loan growth. The Company's total revenue numbers exceeded analysts' consensus estimates of $9.46 billion. AmEx had provision for losses of $775 million in Q1 FY18 compared to $573 million in Q1 FY17. The increase, which was in-line with the Company's expectations, indicated growth in the Company's loan portfolio and an increase in the lending write-off and delinquency rates.
AmEx had non-interest revenues of $7.88 billion in Q1 FY18, which was an increase of 9.30% from $7.21 billion in Q1 FY17. The Company had a net interest income of $1.84 billion in the quarter under review compared to $1.50 billion in prior year's same quarter, reflecting an increase of 22.57%. Also, AmEx's worldwide card-billed business grew 12.49% to $283.80 billion on a y-o-y basis, while its worldwide average basic Card Member spending jumped 6.61% to $4.68 trillion on a y-o-y basis in the reported quarter.
AmEx incurred total expenses of $6.86 billion in Q1 FY18, 8.96% higher than $6.30 billion in Q1 FY17. The Company spent a record $2.35 billion on card member reward expenses in the quarter under review, up 13.88% from $2.06 billion in the previous year's corresponding quarter. This increased expenditure was intended to attract more high-spending customers and counter competition from major US banks.
AmEx reported a net income of $1.63 billion in the quarter ended March 31, 2018, an increase of 30.62% from $1.25 billion in the same period of the previous year. The Company's diluted earnings per share (EPS) also jumped 37.78% to $1.86 in the reported quarter from $1.35 in Q1 FY17, outperforming analysts' consensus estimates of $1.71.
During Q1 FY18, AmEx's US Consumer Services (USCS) segment's revenues, net of interest expenses, were $3.7 billion, up 13.16% y-o-y. The segment had a net income of $640 million in Q1 FY18 compared to $494 million in Q1 FY17, reflecting an increase of 29.55%.
AmEx's International Consumer and Network Services (ICNS) segment reported revenues, net of interest expenses, of $1.77 billion in Q1 FY18, an increment of 11.76% from $1.58 billion in Q1 FY17. The segment had a net income of $291 million in the quarter under review, an increase of 15.48% from $252 million in the previous year's comparable quarter.
For Q1 FY18, AmEx's Global Commercial Services (GCS) segment generated revenues of $3.04 billion, 8.75% higher than $2.80 billion in Q1 FY17. The segment had a net income of $552 million in Q1 FY18, up 34.96% from $409 million in Q1 FY17.
During Q1 FY18, AmEx's Global Merchant Services (GMC) segment's net revenues were $1.17 billion, up 10.24% y-o-y. The segment had a net income of $472 million in Q1 FY18 compared to $357 million in Q1 FY17, reflecting an increase of 32.21%.
AmEx had cash and cash equivalents of $31 billion as on March 31, 2018, an increase of 6.90% from $29 billion as on March 31, 2017. The Company had a long-term debt of $52 billion at the end of Q1 FY18, the same as in Q1 FY17.
For the full fiscal year 2018, AmEx expects revenues to increase by at least 8%, and EPS to be at the high-end of the $6.90 to $7.30 range, which the Company shared in January 2018.
On April 24, 2018, AmEx declared a semi-annual dividend on the Company's 5.200% Fixed Rate/Floating Rate Non-Cumulative Preferred Shares, Series B, of $26,000 per share, equivalent to $26.00 per related Depositary Share. The dividend is payable on May 15, 2018, to shareholders of record as on May 01, 2018.
Stock Performance Snapshot
May 01, 2018 - At Tuesday's closing bell, American Express' stock marginally fell 0.17%, ending the trading session at $98.58.
Volume traded for the day: 2.90 million shares.
Stock performance in the last month – up 8.33%; previous six-month period – up 2.91%; and past twelve-month period – up 24.42%
After yesterday's close, American Express' market cap was at $84.68 billion.
Price to Earnings (P/E) ratio was at 28.88.
The stock has a dividend yield of 1.42%.
The stock is part of the Financial sector, categorized under the Credit Services industry. This sector was up 0.2% at the end of the session.
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