American Express profit dips on higher costs, but beat estimates

American Express Co's profit fell less than expected in the second quarter, as higher spending by card members made up for increased costs from offering rewards. Total revenue, net of interest expense, rose 1 percent to $8.3 billion in the quarter. AmEx said it spent $1.93 billion on card member rewards in the second quarter, up 9 percent from a year earlier. Analysts on average had expected a profit of $1.43 per share, according to Thomson Reuters I/B/E/S. But the drop in net income was also the result of a 21 percent jump in total expenses.


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UPDATE 1-American Express profit dips on higher costs, but beat estimates (AXP, COST, JPM, C)

Total revenue, net of interest expense, rose 1 percent to $8.3 billion in the quarter. (Adds details)July 19 (Reuters) - American Express Co's profit fell less than expected in the second quarter, as higher spending by card members made up for increased costs from offering rewards. AmEx said it spent $1.93 billion on card member rewards in the second quarter, up 9 percent from a year earlier. But the drop in net income was also the result of a 21 percent jump in total expenses. Analysts on average had expected a profit of $1.43 per share, according to Thomson Reuters I/B/E/S.




Absent the tax adjustment, earnings would have been 75 cents a share, topping analysts expectations for a profit of 71 cents a share. The results, for the last quarter of Microsoft's fiscal year, were better than analysts expected. For the full fiscal year, Microsoft's sales totaled $89.9 billion, up 5 percent from a year earlier. Microsoft's quarterly profit more than doubled as the company's cloud-computing products continued to gain traction. The Redmond company's quarterly profit more than doubled from a year ago on growth in its cloud-computing products.


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