AmEx Card Spending Rises 1.9%, IBM Books $5.5 B Tax Related Charge

Mukesh Buch
19 Jan, 2018
New York City

American Express beats earnings estimates but reported quarterly loss on the account of one-time tax reform related charges. IBM fell on weak profit outlook. SunTrust Banks profit jumped 58%. Schlumberger net loss narrowed.

[R]1:45 PM New York City, New York – American Express beats earnings estimates but reported quarterly loss on the account of one-time tax reform related charges. IBM fell on weak profit outlook. SunTrust Banks profit jumped 58%. Schlumberger net loss narrowed.[/R]

Tollbooth Index increased 21.99 or 0.2% to 14,589.36.

Earnings Review

American Express Company ((AXP)) slumped 2.6% or $2.56 to $97.32 after the credit cards services provider reported total revenues in the fourth-quarter ending in December surged 10% from a year ago to $8.8 billion.

Net in the quarter swung to a loss of $1.2 billion or $1.41 per diluted share from profit of $825 million or 88 cents in the same quarter last year.

In the quarter, cardholders spent $291.4 billion on its cards compared to $263.2 billion and average card member spending rose 1.9% to $5,300 from $5,181 in the same period a year earlier.

The credit cards services provider said it had temporarily suspend the buyback program after the one-time charge from the new tax law.

Citizens Financial Group Inc ((CFG)) jumped 3.1% or $1.40 to $47.15 after the retail bank services provider said total revenues in the fourth-quarter ending in December advanced 3% from a year ago to $1.5 billion.

Net income in the quarter soared 37.5% to $666 million or $1.35 per diluted share from $282 million or 55 cents in the same quarter last year.

First Horizon National Corp ((FHN)) slid 9 cents to $20.12 after the banking and financial services provider stated revenues in the fourth-quarter ending in December soared 14% from a year ago to $375.3 million.

Net in the quarter swung to a loss of $52.8 million or 20 cents per diluted share from profit of $53.3 million or 23 cents in the same quarter last year.

International Business Machines Corp ((IBM)) declined 3.9% or $6.62 to $162.54 after the information technology provider reported revenues in the fourth-quarter ending in December jumped 4% from a year ago to $22.5 billion.

Net in the quarter swung to a loss of $1.1 billion or $1.14 per diluted share from profit of $4.5 billion or $4.72 in the same quarter last year.

IBM''s Technology Services and cloud platforms revenue in the quarter fell 1% to $9.2 billion but revenue in the cognitive solutions business jumped 3% to $5.4 billion.

IBM took one-time charge of $5.5 billion as a result of U.S. tax reform.

In fiscal 2018, IBM forecasted earnings per share of about $13.80.

SunTrust Banks, Inc ((STI)) rose 16 cents to $68.10 after the financial services provider reported total revenues in the fourth-quarter ending in December increased 4.5% from a year ago to $2.3 billion.

Net income in the quarter jumped 58.5% to $710 million or $1.48 per diluted share from $448 million or 90 cents in the same quarter last year.

Schlumberger Limited ((SLB)) fell 11% to $76.25 after the oil and gas services provider said revenues in the fourth-quarter ending in December advanced 9% from a year ago to $30.4 billion.

Net loss in the quarter narrowed to $1.5 billion or $1.08 per diluted share from $1.7 billion or $1.14 in the same quarter last year.