American Express (NYSE:AXP) extended a two-year low as the card company missed all analyst expectations in the third quarter, hurt by continued headwinds from a stronger U.S. dollar and a rise in marketing spending.
Shares fell 5.9% to $72.00 at 10:44 a.m. in New York, after touching $7.39, the lowest intraday price since May 2013.
Net income decreased to $1.27bn, or $1.24 per share, in the July-to-September quarter, down from $1.48bn, or $1.40 per share, a year earlier, the New York-based company said in a statement on Wednesday.
Third-quarter revenue decreased 1.3% to $8.19bn year-over-year.
Stripping out the impact of currency conversions, revenue improved 3%, driven by higher card member spending.
Analysts polled by Capital IQ anticipated per-share earnings of $1.31 and revenue of $8.32bn.
The company’s U.S. card-service business posted its earnings declined 11% to $794mln. Revenue increased 5% to $4.7bn.
American Express has faced challenges all year following the fallout from its announced breakup with Costco Wholesale (NASDAQ:COST), the company's largest co-branded credit card program
Moving forward, AmEx said it now anticipates full-year 2015 per-share earnings of $5.20 and $5.35, compared with its previous estimate for per-share profit to be flat-to-slightly-below the $5.56 reported for 2014.
“We continue to expect quarterly earnings performance to be more uneven than it has been historically,” Chief Executive Officer Kenneth Chenault said in the statement.