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Credit card issuer American Express Co is soaring in trading on Thursday after beating earnings expectations.
The firm blew earnings expectations out of the water at $1.20 per share against analyst projections of $0.97 per share.
Despite the beats against analyst expectations, the total revenue American Express posted was its lowest quarterly revenue in more than five years as it struggled to make up for the loss of its contract with Costco Wholesale Corp.
Total revenue, net of interest expense, fell 5 percent to $7.77 billion in the three months ended Sept. 30 – the first quarter with no revenue from the Costco partnership. It was right in line with analysts’ expectations.
Costco co-branded portfolio accounted for about 8 percent of the spending on AmEx cards in 2015.
Following the news, American Express is trading up around 9% as of 10:15 a.m. ET to
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