American Express Shares Drop As Earnings Slide

Shares of American Express Co. dropped in Thursday's extended session after the credit-card company posted a smaller quarterly profit than the same period last year despite beating expectations. American Express reported its fourth-quarter earnings fell to $899 million, or 89 cents a share, from $1.45 billion, or $1.39 a share, a year earlier. On an adjusted basis, the financial company earned $1.23 a share. Revenue, net of interest expense, shrank to $8.39 billion from $9.08 billion a year ago. Fourth-quarter results reflect a $419 million charge that includes restructuring costs associated with the enterprise growth group. Analysts surveyed by FactSet had forecast earnings of $1.12 a share on revenue of $8.38 billion. American Express expects 2016 earnings per share of $5.40 to $5.70. Shares fell 1.8% in after-hours trading after an earlier rally of 4%.