American Express Profit Declines
April 20 2016 - 4:47PM
Dow Jones News
By Lisa Beilfuss
American Express Co. said its profit in the latest quarter
declined after the card company took steps to overhaul its
business.
At the start of this year, Chief Executive Kenneth Chenault said
AmEx would take "significant actions" to change the trajectory of
its business after posting a slide in 2015 earnings and issuing a
bleak outlook for 2016. The company had a rough go last year, under
growing competitive pressure that was highlighted by the loss of
its 16-year exclusive relationship with warehouse-club retailer
Costco Wholesale Corp. That deal expired at the end of March.
The company backed its outlook for 2016 on Wednesday.
Fellow card company Discover Financial Services has similarly
taken strides to improve its business after a rocky end of the
year, hurt by prolonged low interest rates and cautious consumer
spending. Earlier this week, Discover reported better-than-expected
first-quarter results as it made good on a promise to accelerate
loan growth.
In all, American Express reported a profit of $1.43 billion, or
$1.45 a share, down from $1.53 billion, or $1.48 a share, a year
earlier.
Revenue rose to $8.09 billion on higher net interest income.
Analysts projected $1.35 in earnings per share on $8 billion in
revenue, according to Thomson Reuters.
Shares in the company, down 7% since the start of the year, rose
2.7% in after hours trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
April 20, 2016 16:32 ET (20:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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