Research Desk Line-up: Capital One Financial Post Earnings Coverage

MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on American Express Co. (NYSE: AXP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AXP, following the Company's posting of its second quarter fiscal 2017 earnings results on July 19, 2017. The Credit card Company reported a 1% gain in revenue. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Credit Services industry. Pro-TD has currently selected Capital One Financial Corporation (NYSE: COF) for due-diligence and potential coverage as the Company announced on July 20, 2017, its net income for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Capital One Financial when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AXP; also brushing on COF. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=AXP

http://protraderdaily.com/optin/?symbol=COF

Earnings Reviewed

For second-quarter fiscal 2017, American Express' consolidated total revenues net of interest expense were $8.31 billion, up 1% compared to revenue of $8.24 billion in Q2 2016. Excluding business from the discontinued relationship and the impact of foreign exchange rates, the Company's adjusted revenues net of interest expense grew 8% on a y-o-y basis. American Express' net and adjusted revenue growth were attributed to higher net interest income and higher adjusted Card Member spending. The Company's revenue numbers exceeded analysts' expectations of $8.19 billion.

During Q2 2017, American Express' discount revenue of $4.82 billion was flat on a y-o-y basis and grew by 7% on an adjusted basis. The discount rate in the reported quarter was 2.44%, up 1 basis point from the prior year due to lower rate volumes coming off the network. The Company's net card fees grew by 8% in the reported quarter to $771 million, driven by continued strength in the US Platinum and Delta portfolio as well as growth in Mexico and Japan.

American Express' Consolidated provisions for losses were $584 million in Q2 2017, up 26% from $463 million in Q2 2016, driven by continued strong growth in the loan portfolio and a higher lending write-off rate. The Company's consolidated expenses totaled $5.8 billion for the reported quarter, up 21% on a y-o-y basis. American Express' operating expenses widened 39% on a y-o-y basis. Excluding the prior-year portfolio sale gain and restructuring charge, adjusted operating expenses fell 4%.

American Express reported net income of $1.3 billion in Q2 2017, down 33% compared to net income of $2.0 billion in Q2 2016. The year-ago same quarter included results related to the Costco US relationship that has since been discontinued, a gain of $1.1 billion ($677 million after-tax) from the sale of the related loan portfolio, and a $232 million ($151 million after-tax) restructuring charge. The Company's diluted earnings per share in the reported quarter were $1.47, down 30% from $2.10 per share in the year ago same period. American Express' earnings numbers topped Wall Street's expectations of $1.43 per share.

Segment Results

During Q2 2017, American Express' US Consumer Services revenues net of interest expense were $3.2 billion, unchanged from a year ago. The segment's provisions for losses in the reported quarter totaled $345 million, up 46% from $237 million a year ago. The increase primarily reflected strong growth in the loan portfolio and a higher lending write-off rate.

US Consumer Services reported net income of $440 million, down 59% compared to net income of $1.1 billion in Q2 2016. The Company's year ago corresponding period included Costco-related revenues, expenses, and a portion of the previously mentioned portfolio sale gain.

For Q2 2017, American Express' International Consumer and Network Services reported total revenues net of interest expense of $1.4 billion, up 1% on a y-o-y basis. The increase primarily reflected higher discount revenue, net interest income, and net card fees, which was partially offset by the benefit of a contractual partner payment in the prior year. The segment's provisions for losses totaled $84 million for the reported quarter, up 8% from $78 million in the year ago same period. The International Consumer and Network Services division's net income totaled $209 million for Q2 2017, down 8% from $228 million in the year ago comparable period.

American Express' Global Commercial Services generated total revenues net of interest expense of $2.6 billion for Q2 2017, up 3% compared to $2.5 billion in Q2 2016, primarily reflecting higher Card Member spending. The segment's net income totaled $500 million, down 13% from $576 million in Q2 2016. The year-ago same period included Costco-related revenues, expenses, and a portion of the previously mentioned portfolio sale gain.

During Q2 2017, American Express' Global Merchant Services recorded total revenues net of interest expense of $1.2 billion, approximately flat on a y-o-y basis. The segment's total expenses were $472 million, down 14% from $547 million in the year ago corresponding period attributed to lower operating expenses and marketing spending. The Global Merchant Services division posted net income of $430 million, up 15% from $373 million in Q2 2016.

As of June 30, 2017, American Express' return on average equity (ROE) was 21.7%, down from 26.4% in the prior year's comparable quarter.

Outlook

American Express forecasted to deliver earnings per share between $5.60 and $5.80 in FY17.

Stock Performance

At the closing bell, on Friday, July 21, 2017, American Express' stock was marginally up 0.28%, ending the trading session at $85.59. A total volume of 3.57 million shares have exchanged hands, which was higher than the 3-month average volume of 3.39 million shares. The Company's stock price soared 7.54% in the last three months, 12.32% in the past six months, and 34.94% in the previous twelve months. Moreover, the stock surged 15.54% since the start of the year. The stock is trading at a PE ratio of 15.50 and has a dividend yield of 1.50%. The stock currently has a market cap of $76.58 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily