American Express Co.'s fourth-quarter profit more than doubled
as customers spent more in the U.S. and abroad, but the company's
results still came in shy of Wall Street expectations.
The credit-card company's adjusted bottom line in the latest
period missed Wall Street expectations by a penny, the first miss
in at least two years. Prior-year results were also stung by
restructuring charges.
Shares were down 0.6% to $87.28 in recent after-hours
trading.
AmEx said spending by its credit-card customers climbed 7.9% to
$254 billion, reflecting higher spending across all regions. The
New York card company caters to the affluent and its results are
typically a closely watched barometer of consumer sentiment.
The company's focus on customers with strong credit histories
who use their cards frequently has helped it bounce back from the
recession more quickly than its peers. AmEx is also expanding the
reach of its prepaid card, called Serve, and some observers see
further retail expansion this year.
AmEx reported a profit of $1.31 billion, or $1.21 a share, up
from $637 million, or 56 cents a share, a year earlier. Excluding
litigation and restructuring charges and other items, adjusted
earnings climbed to $1.25 from $1.09 a share.
Revenue, net of interest expense, grew 5% to $8.55 billion.
Analysts surveyed by Thomson Reuters expected a profit of $1.26
a share on $8.54 billion in revenue.
Net interest income grew 11%. Expenses were down 8.1%.
AmEx's provision for losses was $528 million in the quarter,
down from $638 million a year earlier but rising from $492 million
in the previous quarter.
The company's U.S. card business reported earnings of $864
million, more than double from the year-ago level.