American Express (AXP.US) stock fell nearly 5.0% on Friday despite the fact that the financial services company reported better than expected quarterly figures.
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Company earned $2.47 per share, beating analysts’ estimates of $2.41 per share, with revenue of $13.56 billion also topping market projections.
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The credit card and payments company also raised its full-year financial outlook, amid a surge in customer spending. American Express continues to guide for revenue growth in the full year to be 23% to 25% higher than 2021 and for EPS to be above its initial guidance of $9.25 to $9.65.
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However, the company increased the amount in reserve for potential defaults, which overshadowed upbeat results. Provision for credit losses of $778 million the quarter accounts for nearly a 90% increase from the second quarter. That includes a $387 million reserve build.
American Express (AXP.US) stock fell sharply following the release of latest quarterly figures, however sellers struggle to break below key support at $134.00, which managed to fend off the bears several times in the past. As long as price sits above this level, another upward impulse towards key resistance at $148.75 may be launched. This level is marked with the upper limit of the wedge formation, 38.2% Fibonacci retracement of the upward wave launched in March 2020 and previous price reactions. Source: xStation5
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