Categories AlphaGraphs, Earnings, Finance

American Express posts upbeat Q4 earnings

Credit card operator American Express (AXP) swung to a profit in the fourth quarter from a loss last year as an increase in cardmember spending, loan volumes and card fees drove revenues higher. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.

Net income was $2.01 billion or $2.32 per share compared to a loss of $1.21 billion or $1.42 per share in the previous year quarter. The latest quarter included $496 million of certain discrete tax benefits while the prior year included a charge of $2.6 billion related to the tax reform.

Related: American Express Q4 2018 Earnings Transcript

Higher cardmember spending, loan volumes and card fees drove consolidated revenues higher by 8% to $10.47 billion. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 10%.

Looking ahead into the full year 2019, the company expects revenue growth in the range of 8% to 10%. Adjusted earnings are anticipated to be in the range of $7.85 to $8.35 per share.

American Express fourth quarter 2018 earnings snapshot

For the third quarter, growth in the loan portfolios and higher lending write-off rate dragged provisions for losses higher by 14%. Consolidated expenses rose 9% on higher rewards and other customer engagement costs.

Revenue from Global Consumer Services Group increased 11% year-over-year on higher loans, cardmember spending, and card fees. Higher cardmember spending drove revenues from Global Commercial Services higher by 15%. Revenue from Global Merchant and Network Services remained flat as a decrease in the average discount rate and lower revenues from network partners offset higher cardmember spending.

Also Read:  Baidu (BIDU) Q2 earnings rise unexpectedly; stock falls

Shares of American Express ended Thursday’s regular session up 0.08% at $99.49 on the NYSE. The stock has fallen over 1% in the past year and over 4% in the past three months.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Biocept (BIOC) revenue drops 23% in Q2; loss narrows

Biocept (NASDAQ: BIOC) reported a narrower loss in the second quarter of 2020. The company's revenue declined by 23% year-over-year to $917,000, hurt by the COVID-19 pandemic. BIOC stock slumped

Lyft rides home better-than-expected results in Q2

Lyft Inc (NASDAQ: LYFT) reported second-quarter financial results after the closing bell on Wednesday. The ride-hailing company reported a 61% dip in Q2 revenues to $339.3 million, narrowly beating Wall

Cisco Systems (CSCO) Q4 earnings drop but top expectations

https://www.youtube.com/watch?v=AFttiM-lTuY&t=138s Network gear maker Cisco Systems, Inc. (NASDAQ: CSCO) on Wednesday announced financial results for the fourth quarter of fiscal 2020, reporting a decline in earnings and revenues. However, the

2 thoughts on “American Express posts upbeat Q4 earnings

Comments are closed.

Top