====American Express (AXP) reported earnings on Wed 19 Oct 2016 (a/h/)

American Express beats by $0.28, reports revs in-line; raises FY16 EPS above consensus; reaffirms FY17 EPS guidance :

• Reports Q3 (Sep) earnings of $1.24 per share, excluding non-recurring items, $0.28 better than the Capital IQ Consensus of $0.96; revenues fell 5.1% year/year to $7.77 bln vs the $7.71 bln Capital IQ Consensus. Excluding the impact of Costco-related revenues in the year ago-period, adjusted revenues net of interest expense increased 5 percent, reflecting a rise in Card Member spending, along with higher net interest income and net card fees.
• Adjusted billed business was up 7 percent, adjusted loan growth remained healthy and net card fees rose 10 percent, reflecting strong performance across our premium card portfolios.
• Third-quarter net income was $1.1 billion, down 10 percent from $1.3 billion a year ago. The current quarter included higher spending on growth initiatives, largely reflected in marketing and promotion expenses, as well as solid progress related to company's efforts to reduce its cost base. Credit quality remained strong, and the company returned a substantial amount of capital to shareholders through share repurchases and dividends. Year-ago results included business related to the company's relationship with Costco that ended earlier this year.
• The company's return on average equity (:ROE) was 26 percent, down from 27 percent a year ago.
• Co issues upside guidance for FY16, raises EPS to $5.90-6.00 from $5.40-5.70, excluding non-recurring items, vs. $5.60 Capital IQ Consensus Estimate.
• Co reaffirms guidance for FY17, sees EPS of at least $5.60, excluding non-recurring items, vs. $5.55 Capital IQ Consensus Estimate.