AmEx raises profit forecast for full year

AmEx raises profit forecast for full year

REUTERS: Credit card issuer American Express Co 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 US$5.90-US$6.00 per share from US$5.40-US$5.70. AmEx reaffirmed its 2017 forecast.Analysts on average had expected the company to earn US$5.50 per share in 2016, according to Thomson Reuters I/B/E/S.Total revenue, net of interest expense, fell 5 percent to US$7.77 billion in the three months ended Sept. 30, beating the average estimate of US$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 in March.Costco co-branded portfolio accounted for about 8 percent of the spending on AmEx…

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