Credit card issuer American Express Company (
) on Friday said its second quarter profit nearly tripled from last
year, beating analyst estimates, but offered cautious commentary
about its overall economic outlook.
The New York-based company reported second quarter net income of
$1.02 billion, or 84 cents per share, compared with $337 million,
or 9 cents per share, in the year-ago period. Last year's results
were hampered by the repurchase of millions of preferred shares
from the federal government, a by-product of the massive banking
On average, Wall Street analysts expected a smaller profit of 78
cents per share.
AmEx said that revenue, net of interest expense, rose 13% from
last year, to $6.9 billion. Still, the company warned it wouldn't
see similar earnings gains in the second half of the year. CEO
Kenneth Chenault commented, "We remain cautious about the economy
and the challenging regulatory environment."
American Express shares fell 34 cents, or -0.8%, in premarket
The Bottom Line
Shares of AXP have a dividend yield of 1.67%, based on last night's
closing stock price of $43.19. The stock has technical support in
the $38-$40 price area. If the shares can firm up, we see overhead
resistance around the $45-$48 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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