American Express Co’s Q4 2007 Earnings Decline Slightly from Year Ago

(NewsVisual, powered by IntellectSpace) -- Although American Express Company (NYSE: AXP) reported on Monday that its full-year 2007 earnings per share rose 16 percent, it also said that its fourth-quarter 2007 earnings fell 3 percent from $0.73 in Q4 2006 to $0.71.

The company’s Q4 2007 net income was down 10 percent from $922 million a year ago to $831 million.

Even so, the company’s 4Q earnings were in line with the new projections it issued in early January; and perhaps, given the fact that it was a surprise-free report, the markets greeted its Q4 results with a mild rebuke.

The company’s stock was trading down slightly from the previous close of $47.40 to $47.36 in noon trading (12:56pm ET).

For the full-year 2007, the company posted much healthier numbers:

Its income from 2006 was up 12 percent from $3.6 billion to $4.0 billion in 2007.  Likewise, its diluted earnings per share increased 16 percent from $2.92 in 2006 to $3.39 in 2007.

“Results for the year met or exceeded all of our long-term financial targets, even though we saw clear signs of a weakening economy and business environment in December,” said CEO/Chairman Kenneth I. Chenault in the company’s statement.

He added:

“Despite the December weakness that we discussed a few weeks ago, fourth-quarter business volumes and credit indicators continued to be in the top tier of the industry.”

NewsVisual decided to create an IntellectSpace Knowledge Map in order to illustrate the business connections of Amex’s Board of Directors as a method for assessing their knowledge of business and for determining the likelihood that its Management Team would benefit from the former’s advice.

The Knowledge Map shows that most Amex’s Directors have widespread involvement with other companies and that seven of them currently sit on other corporate boards.  The following three are especially noteworthy:

Amex Director Charlene Barshefsky, a former U.S. Ambassador, also serves on the boards of Intel Corp, The Estee Lauder Companies Inc, and Starwood Hotel & Resorts Worldwide Inc; Amex Director Peter F Chernin is also a CEO/COO/President/Director for News Corp, as well as a board member of Gemstar-TV Guide International Inc and DirectTV Group Inc; and Amex Director Steven S Reinemund also sits on the boards of Johnson & Johnson Inc, Exxon Mobile Corp, and Marriott International Inc.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=80056470-418f-4159-b893-2776cfbc4946