AmEx Upgrades Provisions For Losses; Profit Rises -- WSJ
October 19 2019 - 3:02AM
Dow Jones News
By Allison Prang
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (October 19, 2019).
American Express Co.'s profit and revenue climbed in the third
quarter, along with its provision for losses.
The credit-card company had a profit of $1.76 billion, up 6.1%
from the comparable quarter a year ago. Earnings were $2.08 a
share, up from $1.88 a share.
Analysts polled by FactSet were expecting $2.03 a share.
Revenue net of interest expense was $10.99 billion, up 8.3% from
a year ago. Analysts were expecting $10.94 billion.
American Express expects revenue to rise between 8% and 10% in
the current quarter, Chief Executive Steve Squeri said in prepared
remarks. He also reaffirmed the company's earnings guidance for the
year.
"The trends we saw in the business this quarter continue to be
consistent with an economy that continues to grow, albeit at a more
modest pace than last year," Mr. Squeri said.
The company reported $879 million in provisions for losses, 7.6%
higher from a year earlier.
This metric rose in the consumer-services division because of a
rise in net lending write-offs and delinquencies, American Express
said.
Expenses rose 8.8% to $7.84 billion. Costs for marketing and
business development rose, and costs for card-member rewards and
services rose.
The board recently approved a new plan to buy back up to 120
million of its shares.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 19, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
American Express (NYSE:AXP)
Historical Stock Chart
From Aug 2024 to Sep 2024
American Express (NYSE:AXP)
Historical Stock Chart
From Sep 2023 to Sep 2024