Thursday, October 18, 2012

Earnings Buzz: eBay Inc (NASDAQ:EBAY) & American Express Company (NYSE:AXP)

Late Wednesday, American Express Company (NYSE:AXP) reported a 1 percent in third quarter net income, helped by a reduction in expenses and increased spending on its credit cards.

For September quarter, American Express reported net income of $1.25 billion, or $1.09 per share, for the three months ended Sept. 30. That compares with net income of $1.24 billion, or $1.03 per share, in the same period last year.

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Revenue rose 4 percent to $7.86 billion from $7.57 billion.

Analysts were expecting earnings of $1.09 per share on revenue of $7.9 billion.

Credit card spends by the company’s customers rose 8 percent in the U.S. during the quarter from a year earlier while globally it rose 6 percent. This contributed to a 4 percent rise in revenues.

The bank's provisions for bad loans rose 92 percent in the quarter to $479 million. "Spending growth continues to be healthy despite the uneven economy," said Dan Henry, American Express' chief financial officer, during a conference call with Wall Street analysts.

Auction site eBay Inc (NASDAQ:EBAY) reported quarterly earnings that were better than expectations while outlook met with forecasts.

The company posted third-quarter earnings excluding items of 55 cents per share, up from 48 cents a share in the year-earlier period.

Revenue increased to $3.40 billion from $2.97 billion a year ago.

Analysts had expected the company to report earnings excluding items of 54 cents a share on $3.41 billion in revenue.

Guidance for the fourth quarter was in-line with estimates: Earnings of 66 to 69 cents a share on revenue of $3.85 billion to $4 billion. Analysts currently expect EPS of 68 cents on revenue of $3.94 billion.

Shares of EBAY are up 0.10% in the pre-open session.

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