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Monday, October 20, 2008
American Express, Equifax Beat Estimates on Profit
FOXBusiness
Credit card issuer American Express Co. (AXP) beat earnings estimates per share when it reported third-quarter earnings results of 74 cents per share Monday after the closing bell.
The company missed slightly on revenue estimates, however, reporting $7.16 billion in revenue for the third quarter. Analysts had expected the company to earn 59 cents per share on $7.5 billion in revenue, according to a poll by Thomson Reuters.
American Express saw a 23% drop in income from continuing operations in the the third quarter. It increased provisions for losses by 51% from one year ago, to $1.4 billion.
"While we continued to generate a substantial level of earnings this quarter, bottom line results were down from a year ago as growth in Cardmember spending slowed, lending volumes moderated, and we set aside significant additions to our loan loss reserves," said Kenneth I. Chenault, chairman and chief executive officer, in a press release issued by the company.
American Express reported that it expects cardmember spending to remain soft and will continue its restructuring plans; it hopes to reduce operating costs and staffing levels in the fourth quarter.
Shares of American Express were moving higher in after-hours trading Monday.
Meanwhile, Atlanta, Ga.-based Equifax reported earnings of 56 cents per share, and net income of $72.3 million for the third quarter on Monday after the closing bell
The company reported non-GAAP earnings of 63 cents per share on revenue of $484.1 million in revenue.
Equifax (EFX) beat estimates for earnings per share, but missed revenue estimates, as analysts polled by Reuters had expected earnings of 51 cents per share on $490.5 million in revenue.
The company announced it expects revenue numbers to range between $453 million and $463 million, with adjusted earnings between 59 cents and 63 cents per share for the fourth quarter.
Shares of Equifax were trading slightly lower in after-hours trading Monday evening.
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