American Express' Profit Falls, Revenue Increases

By Allison Prang 

American Express Co.'s fourth-quarter profit declined from a year ago but its revenue increased.

The credit-card company's profit was $1.69 billion for the quarter, down 16% from the comparable quarter a year ago. Earnings were $2.03 per share, 2 cents ahead of what analysts polled by FactSet were expecting.

A year earlier, American Express recorded an income-tax benefit, which helped earnings. For the fourth quarter of 2019, it reported income-tax expenses.

Total revenue net of interest expense were $11.37 billion, meeting analysts' consensus estimate. Revenue was up more than 8% from the comparable quarter a year ago.

Card member rewards costs increased year over year by over 8%.

The company expects earnings for 2020 to be between $8.85 and $9.25 a share and revenue, adjusted for foreign-exchange impact, to rise between 8% and 10%, Chief Executive and Chairman Stephen Squeri said in prepared remarks. Analysts are guiding for earnings to be within that range.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

January 24, 2020 07:45 ET (12:45 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.