American Express Wows The Street, Here Is What Was Said After The Earnings Report
Shares of American Express Company (NYSE: AXP) soared higher by more than nine percent on Thursday after the company reported a top-and-bottom line beat in its third quarter earnings report and revised its full year outlook higher.
Following the release of the earnings report, the company’s Executive Vice President and Chief Financial Officer Jeff Campbell hosted a conference call with analysts in which he offered prepared remarks and then took questions from the analysts.
Here is a summary of notable quotes, courtesy of Seeking Alpha’s transcript.
Campbell on future initiatives: “These include a renewed emphasis on our Platinum Card portfolios in the U.S., which provide a combination of service, access and benefits that have been the benchmark of value for more than 30 years. They also include our biggest campaign yet to build on the success of Small Business Saturday and drive additional spending at neighborhood businesses.”
Campbell on foreign exchange issues: “I would note that FX had a relatively small impact on our reported results this quarter, the first such quarter in quite some time.”
Campbell on operations in the UK post Brexit: “he weakening of the British pound that has occurred since the Brexit vote at the end of June has been a drag on our reported billings and revenues. But from an earnings perspective, as you recall, we are relatively hedged naturally against the pound as the UK serves as the headquarters for many of our international operations.”
Campbell on capital returns: “On a year-to-date basis, we have returned 92% of the capital we have generated to shareholders, which has driven a 7% reduction in our average shares outstanding.”
Campbell on Fed interest rates: “I think everyone would recall that given the significance of our charge card franchise, for us all else being equal, rising interest rates are – cost us a little bit of money. 100 basis points all else being equal is a couple hundred of million dollars. On the other hand, rising interest rates, in theory, should be accompanied by reasonably good economic conditions and that generally provide some kind of offset.”
Campbell on international markets: “Our international small business segment, which is reported in GCS is – has consistently for some time now been our highest growth segment in the company. So we feel really good about the growth we have been getting and we will be doing a number of things to try to accelerate it further. When you say though talk about your international strategy, that’s always a challenging question, because we don’t have an international strategy. We have a strategy in the UK. We have different strategy in Germany where we are greatly able to leverage the tremendous strength of our business, which has really nice synergies. ”