In the latest American Express earnings report (NYSE:AXP), the company posted a profit that came in below what analysts were calling for in their consensus estimate, sending AXP stock tumbling more than 3% after the bell on Thursday.
The credit card operator and financial services company said that for its fourth quarter of its fiscal 2018, its earnings came in at $2.32 per share, roughly 90 cents higher than the $1.42 per share from its fourth quarter of fiscal 2017. On an adjusted basis, the company posted earnings of $1.74 per share, missing the $1.80 per share that analysts were calling for, according to data compiled by Refinitiv.
American Express added that its revenue for the last quarter of its 2018 tallied up to $10.47 billion, gaining 8% compared to the year-ago quarter. However, this figure was weaker than the $10.56 billion that analysts were calling for, according to a survey conducted by Refinitiv.
This quarter did mark a period of record revenue for the credit card operator. “This was the sixth consecutive quarter with revenue growth of at least 8 percent, and it was driven again by higher Card Member spending, loans and card fees,” Stephen J. Squeri, American Express chairman and CEO said in a press release.
In the fourth quarter, provisions for losses were up 14 percent year over year, which the company said reflected growth in the loan portfolio and higher lending write-off rates.