American Express Q2 Profit Beats, but Revenue Misses; Loan Loss Provisions Surge Higher (AXP)

By Staff,

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Credit card issuer American Express Company ( AXP ) late Wednesday poster flat second quarter earnings from last year, as provisions from loan losses grew at a surprisingly high rate.

The New York-based company reported second quarter net income of $1.3 billion, or $1.15 per share, compared with $1.3 billion, or $1.10 per share, in the year-ago period.

Revenue rose 5% from last year to $7.96 billion.

On average, Wall Street analysts expected a smaller profit of $1.10 per share, albeit on higher revenue of $8 billion.

On a sour note, AXP said that provisions for loan losses surged 29% from last year to $461 million. Loan loss provisions are monies set aside to cover loans that a creditor does not expect to be repaid.

American Express shares fell 55 cents, or -1%, in aftermarket trading Wednesday.

The Bottom Line
Shares of American Express ( AXP ) have a 1.37% dividend yield, based on today's closing stock price of $58.29. The stock has technical support in the $53-$55 price area. If the shares can firm up, we see overhead resistance around the $60-$61 price levels.

American Express Company ( AXP ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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

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This article appears in: Investing Stocks
Referenced Stocks: AXP

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