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