American Express' Preannounced 4Q10 EPS Misses Estimates

Morgan Stanley is out with its report on American Express AXP after AXP pre-announced 4Q10 EPS of $0.94. In a note sent to investors, Morgan Stanley writes, "AXP announced a facilities exit which drove a 4Q10 pre-announcement of 94c (vs our estimate of 98c, including V/MA settlements). We think the miss was likely on the expense side, as AXP continues to invest in future growth opportunities. We lowered our 4Q10 EPS estimate to 94c on this announcement, as well as 2011e to $3.85 (vs $3.94) --- 4c driven by higher marketing, 4c by continued facilities exit costs." Morgan Stanley maintains Overweight on AXP. AXP is trading at $45.17, down 2.59% from yesterday's close.