American Express shares dive after company misses on revenue
Shares of American Express Co. fell nearly 4% late Wednesday after the credit-card company missed Wall Street's second-quarter revenue estimates. American Express said it earned $1.62 billion, or $1.84 a share, in the quarter, compared with $1.3 billion, or $1.47 a share, in the year-ago period. Revenue rose to $10 billion, from $9.2 billion a year ago. Analysts polled by FactSet had expected earnings of $1.83 a share on sales of $10.06 billion. The increase in revenue reflected "higher spending by consumer, small business, and corporate card members," American Express said in a statement. "Revenues for the quarter also benefitted from higher loan volumes and fee income." The company said it will increase dividend and resume its share buyback program this quarter. Shares had ended the regular session up 1.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.