Credit card issuer American Express Company (NYSE:AXP) late Wednesday posted blowout Q3 earnings results, with profits coming in much higher than even the most optimistic estimates.
The New York City-based company reported adjusted Q3 EPS of $1.24 per share, which was much better than Wall Street’s expectations of $0.96. Revenue fell 5.1% from last year, however, to $7.77 billion, but still beat estimates for $7.71 billion.
Consolidated expenses were $5.5 billion in the latest period, down 3% from $5.7 billion last year.
Looking ahead, AXP now expects adjusted full-year earnings of $5.90 to $6.00 per share, up from a prior outlook of $5.40 to $5.70.
The company commented via press release:
“Strong operating discipline and credit quality helped to keep us ahead of the 2016 financial outlook that we first provided at the beginning of the year,” said Kenneth I. Chenault, chairman and chief executive officer. “While reported revenues were down 5 percent, we saw underlying revenue growth of 5 percent after adjusting for the absence of Costco-related business this quarter – slightly faster than comparable second-quarter levels. Adjusted billed business was up 7 percent, adjusted loan growth remained healthy and net card fees rose 10 percent, reflecting strong performance across our premium card portfolios.
American Express shares rose $3.06 (+5.00%) to $64.31 in after-hours trading. Prior to today’s report, AXP had fallen nearly 12% year-to-date.