Credit card issuer American Express Company (
) late Thursday said its first quarter profit more than doubled
from last year, helped by a rebound in consumer spending and
improved credit quality.
The New York-based company reported first quarter net income of
$873 million, or 73 cents per share, compared with $361 million, or
31 cents per share, in the year-ago period. On average, Wall Street
analysts expected a smaller profit of 64 cents per share.
Revenue jumped 11% from last year to $6.6 billion. That gain was
fueled by 16% higher spending by AmEx customers compared with last
The company also said its loan loss provisions were cut in half
from last year, to $687 million, while its net charge-off rate in
the U.S. fell to 7.2%.
American Express shares rose $1.08, or +2.3%, in premarket
The Bottom Line
Shares of AXP have a 1.54% dividend yield, based on last night's
closing stock price of $46.77. The stock has technical support in
the $42 price area. If the shares can firm up, we see overhead
resistance around the $50-$51 price levels. We would remain on the
sidelines for now.
American Express Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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