Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Fiat Chrysler and France's Renault could soon partner up to take on the sweeping changes to the global auto industry, according to a report in the Financial Times. The...Autosread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
The federal minimum wage has remained $7.25 per hour since 2009. But several states, and even some companies, have since taken matters into their own hands to pay employees a...Workread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
American Express reported fourth-quarter revenue on Thursday that narrowly missed analysts' expectations and an earnings profit after reporting a loss for the same period a year ago.
Annual profit for the financial services company in 2018 was more than double what it was a year earlier, capping a solid year for AmEx.
Here's how the company did compared with what Wall Street expected:
Shares of the credit card issuer fell roughly 2.5 percent in after-hours trading Thursday.
American Express brought in $10.47 billion in revenue for the fourth quarter of 2018, an 8 percent rise from a year earlier, according to the company. Still, the number was below the $10.56 billion expected by Wall Street.
"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.
American Express issued an upbeat forecast for 2019, partially thanks to consumer spending staying "reasonably strong."
Its full-year revenue guidance for growth was between 8 and 10 percent, versus Wall Street's expectations of 7.5 percent. The company's full-year earnings per share guidance was forecast to be between $7.85 and $8.35, in line with expectations of $8.12.
"While there are mixed signals in the political and economic environment, based on what we see in the business we are starting 2019 from a position of strength," Squeri said on a call with analysts following the report.
The company more than doubled its annual profit from a year ago. American Express brought in $6.92 billion for 2018 compared with $2.75 billion in 2017.
AmEx earned $2.32 per share in the fourth quarter, a significant improvement from a year ago, when it reported a loss of $1.42 per share for the same period. The comparable earnings amount, which excludes a U.S. tax benefit, was $1.74 per share, missing analysts' estimates of $1.80 per share forecast by Refinitiv.
Analysts have been keeping an eye on U.S. consumer spending, which tends to track closely with the performance of credit card companies.
"A macro theme for American Express is the health of the consumer, and we've seen pretty good U.S. consumer credit," Jefferies Managing Director John Hecht told CNBC. "That should portend decent borrowing."
Nomura and other firms had also been watching something known as "provisions" for losses, the expenses for uncollected customer loans and loan payments. Those costs have been dropping in recent quarters, Carache said. 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.
Citigroup, J.P. Morgan and Bank of America all said in their own quarterly reports this week that they expect consumer credit quality this year to be similar to 2018, said Christopher Donat, managing director at Sandler O'Neill & Partners. J.P. Morgan CEO Jamie Dimon said on a call with analysts that "consumers are in good shape, they're spending money."