American Express Q4 Profit Rises, but Revenue Misses; Loan Losses Mount (AXP)


Shutterstock photo

Credit card issuer American Express Company ( AXP ) late Thursday posted higher fourth quarter profits, but its revenue missed expectations loan loss provisions grew substantially.

The New York-based company reported fourth quarter net income of $1.19 billion, or $1.01 per share, compared with $1.06 billion, or 88 cents per share, in the year-ago period.

Revenue rose 7% from last year to $7.74 billion.

On average, Wall Street analysts expected a smaller profit of 98 cents per share, albeit on higher revenue of $7.92 billion.

On a sour note, AmEx said its loan-loss provisions rose to $409 million from $239 million in the same quarter last year. Loan-loss provisions refer to money set aside to cover bad loans.

American Express shares fell $1.05, or -2.1%, in premarket trading Friday.

The Bottom Line
Shares of American Express ( AXP ) have a 1.41% dividend yield, based on last night's closing stock price of $50.95. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $52-$54 price levels.

American Express Company ( AXP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com



This article appears in: Investing , Stocks


More from Dividend.com







Dividend.com
Contributor:

Dividend.com

Dividends
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com