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.