American Express Sees Higher Profit in Q3;Reported Increase in Credit Card Spending (AXP)
Global service company, American Express Company( AXP ) on Thursday reported higher earnings for their third quarter.
The New York based company announced that their third quarter revenue increased by 4 percent from $7.57 billion to $7.87 billion, and their net income rose by one percent.
The company reported profit of $1.25 billion, or $1.09 a share, compared with $1.24, or $1.03 a share from last year's third quarter. Analysts had predicted sales of $7.9 billion, or $1.09 per share.
The increase in revenue is a result of lower expenses and increased credit card spending by their customers. Spending by the company's customers increased by 8% during the July to September period, compared to same period of time last year. Global spending increased by 6%.
American Express shares were down 67 cents, or 1.13% during premarket trading Thursday.
The Bottom Line
American Express Company( AXP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.