American Express says its Q4 earnings and revenue came in weaker than last year
- American Express says its Q4 earnings & revenue came in weaker than last year.
- The U.S. firm released £81 million of funds it had set aside to cover for bad loans.
- Shares of the company slid just under 3% in premarket trading on Tuesday.
The American Express Company (NYSE: AXP) said on Tuesday that its fourth-quarter earnings and revenue saw a decline on a year over year basis.
As per the NYSE-listed company, it released £81 million of funds in Q4 that it had previously set aside to cover for bad loans amidst the ongoing COVID-19 crisis that has so far infected more than 100 million people worldwide and caused over 2.1 million deaths. In comparison, American Express had valued credit provisions at £485.51 million in the prior quarter.
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In separate news from the United States, advanced technologies company Lockheed Martin also published its financial results for the fiscal fourth quarter on Tuesday.
American Express Q4 financial results versus analysts’ estimates
American Express said that its profit in the fourth quarter printed at £1.05 billion versus the year-ago figure of a higher £1.23 billion. The U.S. company earned £1.28 per share in Q4. In the same quarter last year, it had earned a £1.48 per share instead. In a report published in the last week of October, American Express had noted £820 million of net income for the fiscal third quarter.
FactSet Consensus for the financial services corporation’s per-share earnings stood at an even lower 96 pence. The New York-based firm’s revenue, net of interest expense, registered at £6.83 billion in the fourth quarter. The figure was capped at a much higher £8.30 billion in the comparable quarter of last year, but analysts had expected a marginally lower £6.82 billion for American Express in Q4.
CEO Stephen Squeri’s comments on Tuesday
The U.S. multinational’s CEO and Chairman Stephen Squeri commented on the earnings report on Tuesday and said:
“While we are still seeing impacts of the COVID-19 pandemic on our business, trends continued to steadily improve in the fourth quarter.”
American Express performed slightly downbeat in the stock market last year with an annual decline of close to 3.5%. Shares of the company slid just under 3% in premarket trading on Tuesday.
Including the price action, the stock is now trading at £86 per share versus a low of £50.35 per share in the last week of March 2020. The price action should come in handy if you want to invest your money in the stock market.
At the time of writing, the U.S. multinational financial services corporation has a market cap of £69.37 billion and a price to earnings ratio of 29.12.