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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third-party research service company (the ''Reviewer'') represented by a credentialed financial analyst. For further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the ''Sponsor''), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.