American Express Beats Earnings, While Panera Bread Flattens - Analyst Blog

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American Express Company ( AXP ) announced Q2 earnings after the bell today.  The company posted earnings of $1.43 per share, beating the Zacks Consensus Earnings Estimate of $1.38, and showed revenues of $8.66 billion, just below the Zacks Consensus Revenue Estimate of $8.67 billion. 

The EPS of $1.43 is a 12.6% year over year growth, and Revenues of $8.66 billion is up 5% year over year. 

Management stated that the company saw increased volumes across the board in every category in the U.S. and Internationally.  This statement alleviated many fears that the International segment would be under-pressure due to the deluge of international conflicts impacting the global economy. 
The company also stated that they saw a 9% increase in card spending.  Again easing fears that spending would decrease in the second quarter. 

While AXP showed solid Q2 numbers, Panera Bread missed on both the top and bottom lines. 

Panera Bread ( PNRA ) posted Q2 EPS of $1.74, a penny below the Zacks Consensus Earnings Estimate, and revenues came in $9 million below the Zacks Consensus Revenue Estimate of $640 million.  EPS showed 0% growth from the year ago numbers, and Revenues posted a 7.1% growth from the year ago numbers.  Also, the Q2 EPS included a one-time $0.08 benefit from the resolution of an insurance matter.  

The area where everyone was concentrating was Same Store Sales growth; the consensus mark was 1.8% growth, but Panera posted SSS growth of 0.1%.  Further, due to this weakness the company revised their Q3 EPS estimates and FY 2014 EPS estimates; Q3 has dropped from the Zacks Consensus Earnings Estimate of $1.54 to a range of $1.40-$1.46, and FY 2014 has declined from the Zacks Consensus Earnings Estimate of $6.87 to a range of $6.65-$6.80. 

In afterhours trading, American Express is up under 1% on mild volume, while Panera saw an initial decline in value immediately after the earnings announcement.  But, about a half hour after the close, shares of Panera have begun to rally, and are up just above 3% on light volume.

Tomorrow, Zacks will publish a detailed earnings report on both American Express, and Panera Bread.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AXP , PNRA

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