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American Express misses by $0.08, reports revs in-line; guides FY17 EPS above consensus
- Reports Q4 (Dec) earnings of $0.91 per share, $0.08 worse than the Capital IQ Consensus of $0.99; revenues fell 4.4% year/year to $8.02 bln vs the $7.99 bln Capital IQ Consensus.
- The company's return on average equity (ROE) was 26.0 percent, up from 24.0 percent a year ago.
- Consolidated provisions for losses were $625 million, up 9 percent from $572 million a year ago, primarily reflecting higher loan growth.
- Consolidated expenses were $6.2 billion, down 2 percent from $6.4 billion a year ago. The prior year included an impairment and restructuring charge of $419 million ($335 million after-tax) as well as Costco-related rewards costs. The current quarter reflected substantially higher levels of investment spending on growth initiatives and a $50 million ($32 million after-tax) restructuring charge mentioned above.
- Co issues upside guidance for FY17, sees EPS of $5.60-5.80 (Prior guidance was at least $5.60), excluding non-recurring items, vs. $5.59 Capital IQ Consensus Estimate.