What American Express Company's Earnings Mean for Mutual Fund Investors (AXP)
Shauna O'Brien Jan 22, 2015
Inside AXP’s Results
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 rose 7% to $9.11 billion from $8.55 billion in the year prior. Analysts expected to see revenue of $8.53 billion.
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
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
|VTSMX||Vanguard Total Stock Market||1.68%|
|NYVTX||Davis NY Venture||1.33%|
The Bottom Line
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