American Express posted lower than expected earnings

American Express posted lower than expected earnings

Revenue falls short off the mark for AmEx

Although it’s called the earnings season, not everyone posts earnings.

American Express's figures surprised Wall Street and not in the right way. The company posted a net income of $257 million or 29 cents per share, from last year’s $1.76 billion.

The revenue slid 29% to $7.68 billion and came below the $8.07 billion consensus, while revenue from commercial services dropped by 30% to $2.3 billion. Consumer services revenue decreased by 23% to $4.6 billion, even though the spending volume increased in the past two months.

For credit loss provisions, AmEx set aside less than expected - $1.6 billion.

Shares slid 0.9% during today’s pre-market session. The stock price fell 22.4% this year, while USA30 lost 6.6%.

Sources: marketwatch.com, investors.com

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