American Express share price up 1% on Q1 earnings revenue miss
The credit card company had better-than-expected earnings, but narrowly missed on revenue expectations.
American Express share price is up after a mixed earnings report. American Express Q1 earnings were up, but American Express Q1 revenue was weaker-than-expected.
American Express earnings:key figures
| Earnings per share | $2.01 |
| Revenue | $10.36 billion |
| Net income | $1.55 billion |
| Merchant and network srvices revenue | $1.6 billion |
American Express share price up 1% as earnings revenue misses estimates
American Express Q1 earnings per share were $2.01, slightly above Wall Street estimates of $1.99. American Express Q1 revenue grew 7% to $10.36 billion, but still fell below predictions of $10.46 billion. The credit card company’s net income fell from $1.86 billion in spring 2018 to $1.55 billion. The corporation’s merchant and network services revenue was unchanged at $1.6 billion.
American Express chief executive officer (CEO), Stephen Squeri, spoke about the positive aspects of American Express’ Q1 profits. He spoke about the success of the company’s digital payments partnership with Paypal and increase in loans.
‘We continued to expand our merchant network and added 3.1 million new proprietary cards in the quarter driven primarily by our digital acquisition initiatives. Loan growth continued to be strong, and credit quality remained at industry-leading levels,’ said Squeri.
How did American Express Q1 results compare to banks with credit cards?
Compared to Citigroup’s Q1 earnings, American Express Q1 earnings were mixed as well. Citigroup had high earnings, but worse-than-expected revenue.
What’s next for American Express 2019 earnings?
After the mixed American Express Q1 results, the credit card company predicted an increase of 8-10% in 2019 revenue. American Express Q2 earnings per share are expected to be between $7.35- $8.35. That projection falls in line with financial analysts’ projection of $8.13. Squeri predicted that American Express earnings will increase with expansions of the corporation’s divisions.
‘Looking ahead, we continue to see a number of attractive growth opportunities across our businesses, and we're going to invest to take advantage of those opportunities in order to drive revenue growth over the moderate to longer term,’ said Squeri.
American Express Q1 profits continue mixed results for payment companies
American Express Q1 earnings are part of a pattern of strong earnings and weak revenue from banks and payment companies. American Express Q1 revenue was hurt by extra expenses of paying card member rewards. Despite high expenses, American Express Q1 earnings show that the company can still survive the advent of digital cards through strategic partnerships.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
