Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against American Express Company
Jul 30 15
Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of American Express Company common stock during the period between October 16, 2014 and February 11, 2015, inclusive. The complaint charges AmEx and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose material adverse information regarding AmEx's business and prospects, including the status of its negotiations with U.S. Costco to renew its co-branding agreement, which was set to expire on March 31, 2016, and the financial impact of that agreement on AmEx's business. As a result of these false and misleading statements and/or omissions during the Class Period, AmEx stock traded at artificially inflated prices, reaching a high of nearly $95 per share on December 29, 2014. Then on February 12, 2015, AmEx announced that it had lost the U.S. Costco co-branding relationship and that the financial impact of that loss would be severe. AmEx disclosed that the U.S. Costco co-branding agreement generated 8% of the Company's revenues in 2014, that one in ten U.S. AmEx cards had been issued pursuant to the U.S. Costco co-branding arrangement and that 20% of its outstanding loans had been made pursuant to that agreement. Finally, as a result of the loss of the U.S. Costco co-branding agreement, AmEx stated that the Company's 2015 and 2016 profits would suffer and that the Company would not be able to make any headway on its previous efforts to increase earnings per share until 2017 at the very earliest. In response to this announcement, the price of AmEx common stock fell from a close of $85.40 per share on February 11, 2015, to close at $77.53 per share on February 13, 2015, a decline of nearly $8 per share. Plaintiff seeks to recover damages on behalf of all purchasers of AmEx common stock during the Class Period.
American Express Company to Open New Lounge at Terminal D in IAH
Jul 30 15
The American Express Company has announced that it will open its seventh The Centurion Lounge at Houston's George Bush Intercontinental Airport, or IAH, terminal D. The 8,500sqft Lounge is currently slated to open in the first half of 2016. The Lounge will feature noise-buffering workspaces, private showers, private phone areas, family room, comfortable seating, a computer bar, tranquility areas and access to high-speed Wi-Fi. A complimentary full bar and food buffet will be available to Card Members in the Lounge.
American Express Company Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Earnings Guidance for the Second Half, Full Year 2015, 2016 and 2017; Reports Write Off for the Second Quarter of 2015
Jul 22 15
American Express Company reported consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total interest income of $1,837 million compared to $1,759 million for the same period a year ago. Net interest income was $1,423 million compared to $1,316 million last year. Pre-tax income was $2,230 million compared to $2,312 million last year. Net income attributable to common shareholders was $1,442 million or $1.42 per diluted share compared to $1,517 million or $1.43 per diluted share last year. Adjusted net interest income $1,575 million compared to $1,486 million last year. Return on average equity was 28.1% against 28.8% a year ago. Return on average common equity was 28.8% against 28.5% a year ago. Return on average tangible common equity was 35.4% against 35.8% a year ago. Book value per common share was $21.85 against $19.32 a year ago. Results for the quarter were negatively affected by the significant impact of a stronger U.S. dollar on international operations. The year-ago quarter included business travel operations and a gain related to the business travel joint venture transaction. Consolidated total revenues net of interest expense totaled $8.3 billion for the second quarter, down 4% from $8.6 billion a year ago. Excluding the impact of foreign exchange rates and business travel results in the year-ago period, adjusted revenues rose 5%. The increase primarily reflected higher Card Member spending and growth in the loan portfolio.
For the six months, the company reported total interest income of $3,694 million compared to $3,535 million for the same period a year ago. Net interest income was $2,870 million compared to $2,653 million last year. Pre-tax income was $4,546 million compared to $4,520 million last year. Net income attributable to common shareholders was $2,956 million or $2.90 per diluted share compared to $2,937 million or $2.77 per diluted share last year. Adjusted total revenues net of interest expense was $16,234 million compared to $16,804 million last year. Return on average equity was 28.1% against 28.8% a year ago.
For the full year of 2015, the company expects to achieve flat to modestly down EPS growth and positive earnings per share growth in 2016.
The company expects earnings per share for the second half of 2015 to be down versus the prior year, consistent with the company discussions on Investor Day.
The company's full year 2015 EPS outlook remains unchanged as the company continue to expect earnings per share for the full year to be flat to modestly down.
The company's outlook to return to positive earnings per share growth in 2016 and to be within the company's target range of 12% to 15% earnings per share growth in 2017 remains appropriate.
For the second quarter of 2015, the company reported net write-offs were $171 billion against $182 billion a year ago.