Earnings Briefing - American Express

LONDON, February 2, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings briefing on American Express Company (NYSE: AXP). On January 21, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP to read our free earnings review on American Express Company (American Express). During Q4 FY14 and FY14, the company's total revenues net of interest expense increased 7% Y-o-Y and 4% Y-o-Y, respectively. American Express' net income attributable to common shareholders rose 11% Y-o-Y in Q4 FY14 and 10% Y-o-Y in FY14. Chairman and CEO, Kenneth I. Chenault, stated that the company's solid Q4 FY14 results reflected the underlying themes that have characterized its performance throughout 2014: higher Card Member spending, increased loan balances, tight control of operating expenses and a substantial return of capital to shareholders through share repurchases. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP

Earnings Overview 

During Q4 FY14, American Express reported total revenues net of interest expense of $9.11 billion, compared to $8.55 billion in Q4 FY13. The company's total revenues net of interest expense during the reported quarter outperformed Bloomberg analysts' forecast of $8.53 billion. In Q4 FY14, American Express' net income attributable to common shareholders improved to $1.44 billion, or $1.39 per diluted share, from $1.30 billion, or $1.21 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected the company to report net income attributable to common shareholders of $1.43 billion, or $1.38 per diluted share, in Q4 FY14. The free research on AXP can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP

In Q4 FY14, American Express' U.S. Card Services segment's net income was down 23% Y-o-Y to $665 million, and its International Card Services segment's net income declined 68% Y-o-Y to $33 million. However, American Express' Global Commercial Services segment Q4 FY14 net income surged to $594 million from $182 million in Q4 FY13. The company's Global Network & Merchant Services segment net income also improved 5% Y-o-Y to $417 million. Additionally, Corporate and Other segment recorded net loss of $262 million in Q4 FY14, compared with net loss of $240 million in Q4 FY13.

For FY14, American Express total revenues net of interest expense stood at $34.29 billion, compared to $32.97 billion in FY13. The company's total revenues net of interest expense during FY14 outperformed Bloomberg analysts' estimate of $33.79 billion. Further, American Express' net income attributable to common shareholders increased to $5.84 billion, or $5.56 per diluted share, in FY14, from $5.31 billion, or $4.88 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income attributable to common shareholders of $5.89 billion, or $5.57 per diluted share, in FY14. Sign up and read the free analyst's notes on AXP at:

http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP

Mr. Chenault informed that American Express made very good progress against the backdrop of an uneven global economy and the negative impact of a strengthening U.S. dollar. The company sees many opportunities for growth, but at the same time, it faces competitive and regulatory challenges, he added. American Express' aim is to continue to capitalize on the opportunities while dealing with the challenges as it enters 2015, he concluded.

Stock Performance 

On the day following the earnings release, January 22, 2015, American Express' stock declined 3.76% to end the session at $84.37. Since then the stock has mostly witnessed a negative momentum. On the last close, Friday, January 30, 2015, the stock finished at $80.69, down 1.60% after vacillating between $80.56 and $82.20. A total of 7.21 million shares were traded which was above its three months average volume of 4.42 million shares. Over the previous three trading sessions and past one month, the company's shares have lost 2.08% and 13.27%, respectively. Further, the stock has declined 10.29% in the last three months. Shares in American Express closed below their 50-day and 200-day moving averages of $90.02 and $89.75, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 25.35. Visit Investor-Edge and access the latest research on AXP at:

http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 38 corporate insider transactions made by 20 individuals. Between December 31, 2014 and January 27, 2015, a total of 363,777 shares have been purchased at an average price of $83.35 per share and for a total value of $30.32 million. During the same period, a total of 178,599 shares, worth $14.87 million, were sold at an average price of $83.27 per share. Following are a few of the aforesaid transactions - on January 26, 2015, Kenneth I. Chenault, bought 127,169 and sold 63,828 shares at an average price of $83.30 per share. On the same day, Edward P. Gilligan, President at American Express, purchased 54,721 and disposed 28,790 shares, at a price of $83.30 per share. Additionally, Stephen J. Squeri, Group President- Global Corporate Services at American Express, also bought 38,535 and sold 18,129 shares at a price of $83.30 per share. Complimentary in-depth research on AXP is available at:

http://get.Investor-Edge.com/pdf/?c=American%20Express&d=02-Feb-2015&s=AXP

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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EDITOR'S NOTES:

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