After Wednesday’s closing bell, American Express Company (AXP) released its fourth quarter financial results. Here’s what the news means for mutual fund investors.
Inside AXP’s Results
Earnings
The company reported net income of $1.44 billion, or $1.39 per share, up from $1.3 billion, or $1.21 per share, a year ago. Analysts expected to see earnings of $1.38 per share.
Revenue
Revenue rose 7% to $9.11 billion from $8.55 billion in the year prior. Analysts expected to see revenue of $8.53 billion.
Job Cuts
The company reported that it will cut 4,000 jobs, or 6% of its workforce as it restructures the company. AXP noted that it may also be creating new jobs to boost efficiency.
AXP Shares in Limbo
Overall, AXP’s most recent financial report from the holiday season was not enough to impress Wall Street. The company’s increase in EPS was helped by the sale of its stake in Concur Technologies.
While its valuation is not overly expensive at just 14x 2015 earnings estimates, investors and fund managers may take a “wait and see” approach with shares.
Mutual Funds to Watch
Investors interested in AXP may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| {% mutualfund VTSMX %} | Vanguard Total Stock Market | 1.68% |
| {% mutualfund FCNTX %} | Fidelity® Contrafund® | 1.42% |
| NYVTX | Davis NY Venture | 1.33% |
The Bottom Line
The funds listed above allow investors to gain exposure to AXP while remaining diversified. Investors interested in IBM may also be interested in Visa (V) or Mastercard (MA).