American Express (AXP) posted better than expected fourth quarter earnings but revenue disappointed the Street and shares were trading about 3% lower after hours.
AmEx posted $1.01 on EPS, 2 cents better than expectations. revenue came in at $7.74 billion, against expectations for $7.92 billion. Cardmember spending hit record levels, and billed business rose 11%, the company said.
AmEx set aside $409 million to cover possible losses, compared to $239 last year, because of “a larger reserve release in the year-ago period and higher loans outstanding in the current period, partially offset by lower net write-offs in the current period. Credit indicators continued to be at historically low levels.”
The company also sounded somewhat cautious about 2012.
“The overall recovery in the U.S. remains uneven and the environment in Europe continues to pose challenges for the global economy. But, we start 2012 from a position of strength and with a unique network that connects millions of consumers, merchants and businesses around the world,” said CEO Ken Chenault.
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