American Express (AXP) Higher Despite Weak Q4 Results

Despite a pretty miserable earnings report, shares of American Express (NYSE: AXP) are 3.7% higher in after-hours trading today. This is likely related to a "sell the news, buy the fact" reaction - meaning the disappointing results were already discounted in the market.

American Express reported Q4 EPS from continuing operations of $0.21, 1 cent lower than the analyst estimate of $0.22 and down 71% from last year's $0.73 per share profit. Q4 revenues fell 11% to $6.5 billion, below the consensus of $7.22 billion.

American Express said overall cardmember spending declined 10% year-over-year, or 5% adjusting for foreign exchange rates. In addition, loan delinquencies and write-offs rose.

American Express said, despite the difficult conditions in the marketplace, they are providing U.S. consumer and small business cardmembers with open credit lines that are on par with year-ago levels.

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