American Express Slips Despite Profit Beat, Raised FY Projections

American Express (AXP) reported larger profits than analysts had expected for nan 2nd 4th Friday, contempt gross and net liking income (NII) that fell short of estimates.

The banking and in installments paper supplier reported grounds quarterly revenue of $16.33 billion, but analysts had expected $16.56 billion. Profits of $3.02 billion, aliases $4.15 per share, handily hit projections of $2.37 cardinal and $3.26 per share, according to statement estimates compiled by Visible Alpha.

American Express said its earnings per stock (EPS) received a boost of astir $0.66 acknowledgment to nan closing of its waste of Accertify, a fraud prevention institution it acquired successful 2010.

American Express Joins Banks Posting Quarterly NII Drops

American Express besides joined peers successful nan finance industry successful reporting sequentially little NII, dropping somewhat to $3.73 cardinal from $3.77 cardinal successful the first quarter. Analysts had expected NII to emergence quarter-over-quarter to $3.8 billion.

American Express Chief Executive Officer (CEO) Stephen Squeri said nan institution is affirming its gross maturation projections of 9% to 11% for nan afloat fiscal year, while besides lifting EPS projections to a scope of $13.30 to $13.80, up from $12.65 to $13.15 previously. Analysts presently task full-year EPS of $12.99.

Squeri said nan top- and bottom-line maturation successful nan 4th was driven by accrued billings, much than 3 cardinal caller paper acquisitions, and double-digit maturation successful paper fees revenue.

American Express shares were down 4.3% to $238.48 arsenic of 10 a.m. ET Friday.