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 content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
