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AmEx raises profit forecast for full year

(Reuters) – Credit card issuer American Express Co (N:) raised its 2016 adjusted earnings forecast and reported better-than-expected third-quarter revenue on Wednesday, sending its shares up 5 percent in extended trading.

The company raised its full-year adjusted earnings forecast to $5.90-$6.00 per share from $5.40-$5.70. AmEx reaffirmed its 2017 forecast.

Analysts on average had expected the company to earn $5.50 per share in 2016, according to Thomson Reuters I/B/E/S.

Total revenue, net of interest expense, fell 5 percent to $7.77 billion in the three months ended Sept. 30, beating the average estimate of $7.71 billion.

Revenue, net of interest expense, rose 5 percent when Costco-related gains were excluded from the third quarter of 2015.

AmEx, which has historically catered to upscale consumers, ended a lucrative partnership with Costco Wholesale Corp (O:) in March.

Costco co-branded portfolio accounted for about 8 percent of the spending on AmEx cards in 2015.

Net income attributable to common shareholders fell about 10 percent to $1.11 billion in the third quarter.

On a per share basis, AmEx earned $1.20, beating analysts’ average estimate of 97 cents per share.

AmEx shares, which have fallen 13.6 percent this year, were trading at $64.38 in extended trading on Wednesday.

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AmEx raises profit forecast for full year

AmEx raises profit forecast for full year

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