American Express Company (AXP) Disappoints in 4Q
American Express Co. said Monday its profit slumped nearly 10 percent in the fourth quarter as it set aside more money to prepare for cardholder defaults.
American Express' customers tend to spend more and have stronger credit histories than the average cardholder, so the company looks better shielded against a tough 2008 than many other lenders. Still, investors appeared concerned that AmEx is girding for deteriorating credit conditions and slower U.S. spending.
American Express shares fell 2.7 percent in after-market trading, having risen $1.96, or 4.3 percent, to close at $47.40 Monday. Last week, its shares hit a four-year low.
The credit-card issuer posted net income of $831 million, or 71 cents a share, down 9.9 percent from $922 million, or 75 cents a share, in the previous year's fourth quarter.
American Express' customers tend to spend more and have stronger credit histories than the average cardholder, so the company looks better shielded against a tough 2008 than many other lenders. Still, investors appeared concerned that AmEx is girding for deteriorating credit conditions and slower U.S. spending.
American Express shares fell 2.7 percent in after-market trading, having risen $1.96, or 4.3 percent, to close at $47.40 Monday. Last week, its shares hit a four-year low.
The credit-card issuer posted net income of $831 million, or 71 cents a share, down 9.9 percent from $922 million, or 75 cents a share, in the previous year's fourth quarter.
Labels: American Express Company, AXP
posted by Stock Administrator @ 8:40 PM
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