Tuesday , January 31 2023

Dow Jones Stock American Express Falls Late Earnings Q4, Outlook Miss


American Express (AXP) declined considerably on Thursday, and the Dow Jones stock was also prudent in the outcome of 2019.


American Express I earn

estimates: Wall Street sees American Express earnings per share up 14 percent to $ 1.80, according to Zacks Investment Research. Revenue ranges from 20% to 10.6 billion dollars.

Results: EPS of $ 1.74 on revenue of $ 10.47 billion. Revenue for consumer services rose 11 percent to $ 5.6 billion. Revenue from commercial services rose 8 percent to $ 3.3 billion. Trade and revenue from network services remained at $ 1.6 billion.

Consolidated loss provisions increased 14 percent, to $ 954 million, due to the increase in the loan portfolio and the high withdrawal rates. Consolidated costs increased 9% to $ 7.7 billion, driven by higher rewards and other costs of customer engagement.

perspective: 2019 EPS is seen at $ 7.85 – $ 8.35, with a midpoint of $ 8.10 under consensus for $ 8.17, on an increase in revenue of 8% -10% over consensus opinion for an increase of 7.7%.

"We continue to see very good results with regard to the investments we have made to win shares and to add a scale," said President and CEO Stephen Squeri. "Our growth throughout 2018 was based on a broad and well-balanced range in terms of geographic and business areas," Bloomberg said. 8%, and was again determined by higher card expense, borrowing and card fees. "

American Express Stock

Credit card giant credits fell 2.5% late after closing 0.1% to 99.49 on today's stock market. Currently, Dow Jones shares are trading well below the 50- and 200-day lines and the relative resistance line is weak. It comes after the stock closed on Wednesday with 1.2% to 99.21.

Among the rivals' Visa (V) was flat, MasterCard (MA) increased by 0.8% and the industrial group leader The green point (GDOT) declined by 1.15%.

American Express shares broke from a record high of 114.55 on December 3 while trying to break out of a mug with a handle base, according to MarketSmith analysts.

The IBD Stock Check tool offers somewhat unclear image at this time. It has a good relative resistance rating of 71, reflecting solid price performance. However, the 74 EPS rating does not meet the CAN SLIM requirements, while the EPS growth rate of 3 years of 10% does not fall far above the 25% mark recommended by IBD founder William J. O'Neil . Total American Express shares have a good composite score of 79.

Dow Jones Stock gets inferior

CFRA research analyst Chris Kuiper dropped the American Express stock last week to buy from a strong buy. It also lowered its target price to 110 from 120.

"We remain positive about AXP's competitive positioning and we believe that its customer base of net worth will continue to outperform competing customers," the analyst said in a research note. "However, as the credit cycle matures, we feel that there is a greater risk of spending more slowly from both consumers and businesses."

He also warned net compression of the interest margin as the yield curve continues to flatter is a risk for Dow Jones shares. Kuiper has kept US earnings per share estimates of 208 stabilized at $ 7.40, but has cut it for 2019 by 5 cents to $ 8.10.

Last year, the Supreme Court threw a lawsuit in which alleged American Express has suppressed competition by stopping retailers by preventing customers from using credit cards with lower commissions for merchants.


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