AmEx revenue misses on strong dollar, loss of co-branded tie-ups
By Avik Das
(Reuters) - American Express Co, the world's largest credit card issuer, reported quarterly revenue that fell short of analysts' estimates, hurt by a stronger dollar and the loss of several co-branded tie-ups.
AmEx's shares fell 1.4 percent to $79.80 after the bell on Thursday.
Revenue from international operations, net of interest expense, fell 8 percent to $1.24 billion in the quarter ended March 31, accounting for about 16 percent of AmEx's total revenue.
The dollar, which has gained about 22 percent in the past 12 months against a basket of major currencies, has been a spot of bother for U.S. multinational companies.
Total revenue, net of interest expense, fell 2.7 percent to $7.95 billion. Analysts had estimated revenue of $8.20 billion, according to Thomson Reuters I/B/E/S.
"AmEx investors generally view tougher revenue comps as more negative than they would for another company," Janney Montgomery Scott LLC analyst Sameer Gokhale said.
AmEx also said the termination of several co-branded relationships, including that with Costco Wholesale Corp in Canada last year, hurt revenue.
"We are now seeing the full impact from the termination of this relationship," a company executive said in a post-earnings conference call, referring to the Costco partnership. Continued...