Kenneth I. Chenault

American Express profit falls 10 percent, but tops estimates

American Express said its third-quarter profits fell by 10 percent from a year earlier, as the company absorbs the loss of its lucrative deal with Costco.

However, the results handedly beat analysts' expectations and the company raised its full-year profit guidance, sending its shares up sharply in after-hours trading.

The credit card giant said Wednesday that it earned $1.14 billion in the quarter ending September 30, or $1.20 per share, down from $1.27 billion, or $1.24 per share, in the same period a year earlier. Analysts had been expecting AmEx to earn 97 cents per share in the latest quarter, according to FactSet

New York-based American Express continues to deal...