American Express Company (AXP) Shares Dip Despite Bottom-Line Beat

AXP stock fell more than 2% after the bell

By Karl Utermohlen, InvestorPlace Writer Jan 18, 2018, 5:59 pm EDT January 18, 2018

American Express Company (NYSE:AXP) reported on its latest quarter after the bell Thursday.

During its fourth quarter of fiscal 2017, the credit card company posted a net loss of $1.2 billion, or $1.41 per share, which came in below the year-ago income of $825 million, or 88 cents per share. The recent tax reform had a negative impact on American Express’ period.

On an adjusted basis, the company earned $1.58 per share, coming in ahead of the Wall Street consensus estimate of $1.54 per share, according to Thomson Reuters. Revenue for the period was $8.84 billion, ahead of the $8.72 billion expected by analysts polled by Thomson Reuters.

At American Express’ quarterly earnings release, CEO Ken Chenault said the company will suspend its buyback program for the first half of the year. The decision was made in order to rebuild its capital due to the upfront charge caused by the new tax law.

The company will continue to pay its quarterly dividend to shareholders, Chenault added. The AmEx boss added that he believes the new tax law will have a positive effect on the U.S. economy and the company in the future.

In October, the company said that Chenault will be retiring in February and he will be succeeded by the current AmEx Vice Chairman Stephen Squeri.

AXP shares fell about 2.4% after hours Thursday due to its quarterly loss.

Subscriber Sign in