American Express falls despite earnings beat

Graham Rapier

Jan 19, 2018, 03:10 IST

Shares of credit card provider American Express fell more than 2% after the closing bell on Thursday despite reporting earnings that exceeded Wall Street expectations.
A previously disclosed $2.6 billion tax charge resulted in the company's first loss in 26 years. Without the one-time charge, however, earnings were $1.58 per share - just above the expected $1.54.
The company also reported revenues of $8.84 billion, 12% above Wall Street expectations.
"We ended the year with record billings and strong loan growth, which helped drive a 10 percent increase in revenues this quarter," CEO Kenneth I. Chenault said in a press release. "Card Member spending grew 11 percent with strong momentum across each of our business segments. Loans grew 14 percent in the quarter while credit metrics remained strong and were again in line with our expectations."
Analysts remain bullish on the stock, giving it an average target of $108 per share, roughly 8% above Thursday's closing price of 99.86.