Shares of American Express Co. fell 2% late Thursday after the credit-card company posted a surprise GAAP quarterly loss and said it has suspended its stock buyback program for now, thanks to a tax charge related to the U.S. tax overhaul. American Express said it lost $1.2 billion, or $1.41 a share, in the fourth quarter, versus earnings of $825 million, or 88 cents a share, in the year-ago period. Adjusted for one-time items, including a $2.6 billion tax charge, the company said it earned $1.58 a share in the quarter. Revenue rose to $8.84 billion, compared with $8.02 billion a year ago. Analysts polled by FactSet had expected GAAP earnings of 72 cents a share and adjusted earnings of $1.54 a share on sales of $8.72 billion. “We ended the year with record billings and strong loan growth,” which helped drive the revenue increase, Chairman and Chief Executive Kenneth Chenault said in a statement. Card member spending rose 11% and loans grew 14% in the quarter. The $2.6 billion charge “reduced our capital ratios,” the company said. American Express will continue to pay its quarterly dividend at the same level but plans to halt its share buyback program for the first half of 2018 “in order to rebuild our capital,” it said. American Express said it expected 2018 earnings to be between $6.90 a share and $7.30 a share. “I feel very good about the progress we’ve made throughout 2017 and will be leaving American Express in very strong hands when Steve Squeri succeeds me as chairman and chief executive officer at the end of this month,” Chenault said. Shares of American Express ended the regular trading session down 0.9%.
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