American Express Earnings Per Share Grow 15%
American Express' earnings per share grew 15% compared with the same quarter last year, according to its Q3 report released today. EPS hit $1.25 in the most recent quarter, and net income rose to $1.37 billion.
The company also saw a 6% gain in revenue and a 9% increase in net income, while it decreased its common shares outstanding by 6%. After adjusting for foreign currency rates, total consumer spending rose by 9%.
Not all the numbers were favorable. AmEx said expenses hit $5.8 billion in the most recent quarter, up 5% compared with last year. Return on average equity fell by 2 percentage points, from 26.3% to 24.3%.
In the second quarter of this year, American Express reported EPS of $1.28 on net income of $1.41 billion.
"Despite an uncertain environment, we generated a healthy increase in revenues and stronger Card Member spending across all regions this quarter," Chairman and CEO Kenneth I. Chenault said. He added: "The combination of top-line growth, credit quality, a strong capital position, and continued vigilance on expenses produced a 15% increase in earnings per share. It also gave us the flexibility to make substantial investments this quarter in marketing and other initiatives to position our business for the years ahead."
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