After-the-Bell Earnings Wrap: AXP, EBAY, SNDK

NEW YORK (TheStreet) -- American Express (AXP), eBay (EBAY) and SanDisk (SNDK) all reported third-quarter earnings after market close on Wednesday, with the results increasingly mixed.

American Express reported third-quarter profit increased 9.3% to $1.37 billion or $1.25 a share, from $1.25 billion or $1.09 a share a year earlier. Revenue was up 6% to $8.3 billion, due to an increase in credit card usage and decline in payment defaults.

Shares were up 1.4% to $76.32 by market close Wednesday, gaining a further 0.24% in after-hours trading.

TheStreet Ratings team rates American Express Co as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate American Express Co (AXP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."


eBay recorded third-quarter net income of $689 million or 53 cents a share, compared to $597 million or 45 cents a share in the year-ago quarter. The strong performance is mainly a result of growth in its PayPal business, which saw total payments volume rise 24.7% to $43.8 billion during the quarter.

Fourth quarter forecasts, however, disappointed the market. The company came in with a lower-than-expected $4.5-$4.6 billion revenue estimate expected for the upcoming quarter, compared to analysts' expectations of $4.64 billion.

The online auction house dropped 4.7% in after-hours trading to $51, adding to a 0.83% drop during the day.

TheStreet Ratings team rates eBay Inc as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate eBay Inc (EBAY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had subpar growth in net income."


SanDisk saw a record 28% increase in revenue for the third-quarter, as flash memory chip prices continued to recover. Revenue came in at $1.63 billion compared to $1.27 billion a year earlier. Net income was $277 million or $1.18 a share, up from $77 million or 31 cents a share in the year-ago quarter.

Shares gained 2.2% to $64.31 in after-hours trading on top of a 0.4% increase during Wednesday trading.

TheStreet Ratings team rates SanDisk Corp as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SanDisk Corp (SNDK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Written by Keris Alison Lahiff.

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