Upcoming AWS Coverage on Mastercard Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 25, 2017 / Active Wall St. announces its post-earnings coverage on American Express Co. (NYSE: AXP). The Company announced its first quarter fiscal 2017 results on April 12, 2017. The credit card Company reported a 7% increase in revenue on an adjusted basis. Register with us now for your free membership at:

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One of American Express' competitors within the Credit Services space, Mastercard Inc. (NYSE: MA), announced on May 02, 2017, that it will release its Q1 2017 financial results. The Company will host a conference call to discuss these results at 9:00 a.m. ET. AWS will be initiating a research report on Mastercard in the coming days.

Today, AWS is promoting its earnings coverage on AXP; touching on MA. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 31, 2017, American Express' consolidated total revenues net of interest expense were $7.89 billion, down 2% compared to $8.09 billion a year ago. Excluding last year's Costco-related business and the impact of foreign exchange rates, adjusted revenues net of interest expense grew 7%. The Company's sales numbers surpassed analysts' consensus of $7.74 billion.

American Express' Card member spending grew 8%, adjusted for changes in foreign exchange rates and Costco-related business that was included in the prior year. The Company's loans were up 11% on y-o-y basis. American Express acquired 2.6 million new cards across its global issuing businesses during the reported quarter.

American Express' consolidated provisions for losses were $573 million for Q1 2017, up 32% compared to $434 million in Q1 2016. The increase primarily reflected higher loans, receivables, and write-offs. The Company's consolidated expenses totaled $5.5 billion, up 1% on a y-o-y basis. The reported quarter reflected higher rewards expenses related to recent product enhancements. The prior year included a benefit of $127 million from a gain on the sale of the JetBlue cobrand portfolio and an $84 million restructuring charge.

American Express reported Q1 2017 net income of $1.2 billion, down 13%, compared to $1.4 billion in the year-ago same quarter, which included certain subsequently discontinued cobrand partnerships. Diluted earnings per share were $1.34, down 8% from $1.45 a year ago. The Company's earnings numbers surpassed Wall Street's estimates of $1.28 per share.

Segment Results

American Express' US Consumer Services segment reported Q1 2017 net income of $469 million, down 32% compared to $694 million a year ago. The year-ago period included Costco-related revenues and expenses. The segment's total revenues net of interest expense decreased 8% to $3.0 billion from $3.3 billion in the year ago comparable period. Provisions for losses totaled $294 million, up 55 % from $190 million a year ago. The increase primarily reflected higher loans and write-offs.

For Q1 2017, American Express International Consumer and Network Services reported net income of $218 million, up 16% compared to net income of $188 million in Q1 2016. The Company's total revenues net of interest expense were $1.4 billion, up 5%, or up 6% on FX-adjusted basis from the year ago corresponding period. The increase primarily reflected higher Card Member spending, net card fees and loans.

Total expenses were $1.0 billion, up 3 % (up 4 % FX-adjusted2) from a year ago. The increase primarily reflected rewards costs, driven by higher Card Member spending.

For Q1 2017, American Express' Global Commercial Services segment reported net income of $418 million, down 14% from $485 million a year ago. The year-ago period included Costco-related revenues and expenses. Total revenues net of interest expense was $2.5 billion, up 3% compared to $2.4 billion in the year ago period, primarily reflecting higher Card Member spending.

Provisions for losses totaled $208 million, up 30% from $160 million a year ago. The increase primarily reflected higher receivables, loans and write-offs, as well as a slight increase in delinquencies.

American Express's Global Merchant Services segment reported Q1 2017 net income of $363 million, up 2% compared to $357 million a year ago. Total revenues net of interest expense was $1.1 billion, down 2% on a y-o-y basis. The year ago period included Costco-related revenues. Total expenses were $505 million, down 3 % from $521 million a year ago. The decrease reflected lower marketing spending.

During Q1 2017, American Express's Corporate and Other reported first-quarter net loss of $231 million compared with net loss of $298 million a year ago.

Stock Performance

At the close of trading session on Monday, April 24, 2017, American Express' share price finished the trading session at $80.45, climbing 1.08%. A total volume of 3.56 million shares exchanged hands. The stock has advanced 21.48% and 24.29% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 9.51%. The stock is trading at a PE ratio of 14.28 and has a dividend yield of 1.59%.

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SOURCE: Active Wall Street