Stock Monitor: Synchrony Financial Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 23, 2018 / Active-Investors.com has just released a free earnings report on American Express Co. (NYSE: AXP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AXP. The Company reported its fourth quarter 2017 and full fiscal year 2017 operating and financial results on January 18, 2018. The credit-card Company reported a 10% growth in revenue and provided guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Synchrony Financial (NYSE: SYF), which also belongs to the Financial sector as the Company American Express. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Express most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
American Express' consolidated total revenues, net of interest expenses, were $8.84 billion for Q4 2017, up 10% compared to $8.02 billion for Q4 2016. The increase primarily reflected higher Card Member spending, loans, and fees, which more than offset the impact of a lower discount rate. The Company's revenue numbers topped analysts' estimates of $8.72 billion.
American Express' revenues, net of interest expenses, were $33.5 billion for the full year 2017, up 4% compared to $32.1 billion in FY16.
During Q4 2017, American Express' consolidated provisions for losses were $833 million, up 33% from $625 million in Q4 2016. The rise primarily reflected a strong growth in the loan portfolio and an increase in the lending write-off and delinquency rates.
For Q4 2017, American Express' consolidated expenses were $6.2 billion, down 1% on a y-o-y basis. Lower spending on marketing initiatives was partially offset by higher rewards expenses, primarily driven by an increase in Card Member spending.
American Express reported a net loss of $1.20 billion, or $1.41 loss per share, for Q4 2017 compared to a net income of $825 million, or $0.88 per share, in Q4 2016. The Company's reported quarter reflected a $2.6 billion charge related to the Tax Cuts and Jobs Act (Tax Act). The charge represents American Express' current estimates of taxes on deemed repatriations of certain overseas earnings and the remeasurement of US deferred tax assets and liabilities. Excluding the impacts of the recently enacted Tax Act, the Company's earnings per share (EPS) were $1.58 for the reported quarter, and were ahead of Wall Street's estimates of $1.54.
For FY17, American Express reported a net income of $2.7 billion, or $2.97 per share, compared to $5.4 billion, or $5.65 per share, in the year ago same period. Excluding the impacts of the Tax Act, American Express' EPS was $5.87 for FY17, and was in-line with the guidance that the Company offered in October 2017 for EPS of $5.80 to $5.90.
Segment Results
During Q4 2017, American Express' US Consumer Services segment's total revenues, net of interest expenses, jumped 13% to $3.4 billion from $3.0 billion in Q4 2016. The increase primarily reflected higher Card Member spending, loans, and fees. The segment reported a net income of $507 million in Q4 2017, up 44% from $351 million in Q4 2016.
During Q4 2017, American Express' International Consumer and Network segment's total revenues, net of interest expenses, were $1.5 billion, up 12% compared to $1.4 billion in Q4 2016. The increase partly reflected higher Card Member spending. The segment's total expenses were $1.2 billion, unchanged from the year ago same period. The segment reported a net income of $199 million in Q4 2017, up from $84 million in Q4 2016.
For Q4 2017, American Express' Global Commercial Services segment's total revenues, net of interest expenses, grew 7% to $2.7 billion from $2.5 billion in Q4 2016, primarily reflecting higher Card Member spending. The segment's total expenses were $1.7 billion, down 7% from $1.8 billion in the year ago comparable period. The reported quarter reflected lower marketing expenses, partially offset by higher rewards expenses related to an increase in Card Member spending. The segment's net income soared 52% to $580 million in Q4 2017 from $382 million in Q4 2016.
American Express' Global Merchant Services segment reported total revenues, net of interest expenses, of $1.2 billion in Q4 2017, up 9% compared to $1.1 billion in Q4 2016. The segment's total expenses were $587 million, up 5% from $560 million in the year earlier corresponding quarter, reflecting higher employee compensation expenses. The segment recorded a net income of $413 million in Q4 2017, up 12% from $369 million in Q4 2016.
Suspension of Share Buybacks
American Express noted that the upfront charge triggered by the Tax Act reduced its capital ratios and, as a result, while the Company will continue its quarterly dividends at the current level, it plans to suspend share buyback program for H1 2018 in order to rebuild its capital.
Outlook
American Express is forecasting EPS to be between $6.90 and $7.30 for FY18. The midpoint of that range would represent an approximate 20% growth from EPS of FY17, excluding the impacts of the Tax Act in 2017.
Stock Performance Snapshot
January 22, 2018 - At Monday's closing bell, American Express' stock slightly rose 0.30%, ending the trading session at $98.32.
Volume traded for the day: 4.98 million shares, which was above the 3-month average volume of 3.33 million shares.
Stock performance in the last three-month – up 6.99%; previous six-month period – up 14.87%; and past twelve-month period – up 29.03%
After yesterday's close, American Express' market cap was at $86.93 billion.
Price to Earnings (P/E) ratio was at 18.97.
The stock has a dividend yield of 1.42%.
The stock is part of the Financial sector, categorized under the Credit Services industry. This sector was up 0.8% at the end of the session.
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