American Express (AXP.US) stock surged over 12.0% on Friday as optimistic guidance for 2023 and dividend increase overshadowed weak Q4 results.
- Credit card company earned $2.09 per share, down 4.1% YoY, and well below analysts estimates of $2.22 per share.
- Revenue rose 17% to $14.2 billion, essentially in line with market projections of $14.22 billion, mainly thanks to record card member spending.
- The company plans to increase its dividend by 15% to 60 cents per share in Q1 2023.
Highlights of American Express quarterly report. Card members loans has risen sharply, indicating a potential decline in the savings of average Americans, while spending remains high. Source: Alpha Street
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app- "Our performance to date and the opportunities ahead position us well to deliver on our longer-term growth plan for double-digit annual revenue growth and mid-teens EPS growth," said CEO Stephen Squeri.
- "We have significantly grown the company’s revenue base by investing in our value propositions, increasing our generational relevance, growing merchant acceptance, introducing new digital capabilities, and enhancing our Membership Model with new lifestyle offerings and financial services" said Squeri.
- "This has led to sustained growth in customer acquisitions – which reached a record 12.5 million new Card accounts in 2022 – along with high levels of engagement and retention, which has enabled us to build scale while driving momentum across our core businesses," he added.
- Company expects net revenue growth in the region between 15% and 17% i 2023 and EPS of $11 to $11.40, which topped Refinitiv analysts average estimates of $10.55 per share.
American Express (AXP.US) stock launched today's session with a bullish price gap and later ion buyers managed to break above major resistance at $168.25, which is marked with previous price reactions and 23.6% Fibonacci retracement of the upward wave launched in March 2020. If buyers manage to uphold current momentum, then nearest resistance to watch is the all-time high around $200.00. Source: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
