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Home / Business / Dow Jones Stock American Express Falls Late in Fourth Quarter, Outlook Miss

Dow Jones Stock American Express Falls Late in Fourth Quarter, Outlook Miss



American Express (AXP) earnings fell short of expectations on Thursday, and Dow Jones shares were also cautious on the 2019 earnings.





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American Express Revenue

Estimate:

According to Zacks Investment Research, earnings per share for American Express increased 14% to $ 1.80. Revenues increase by 20% to $ 10.6 billion.

Results: EPS of $ 1.74 on revenue of $ 10.47 billion. Consumer Services revenue increased 11% to $ 5.6 billion. Commercial services revenue increased 8% to $ 3.3 billion. Trading and network services revenue was unchanged at $ 1.6 billion.

Consolidated provisions for losses increased 14% to $ 954 million, reflecting the growing credit portfolio and higher depreciation rates. Consolidated expenses increased 9% to $ 7.7 billion, driven by higher rewards and other customer retention costs.

Outlook : Profit for the year 2019 is between $ 7.85 and $ 8.35, with the mean of $ 8.10 below the consensus of expected revenue growth of 8% to 10% %, above the consensus opinion of 7.7%.

"We continue to see very good returns on our investments to gain and set new standards," said Stephen Squeri, Chairman and CEO. "Our growth across 2018 was broad and balanced across all regions and businesses, with Card Member spending up 8% on a currency-neutral basis, reaching a strong prior-year quarter for the sixth consecutive quarter of revenue growth of at least this in turn, due to higher cardholder spending, credit and card fees. "

American Express share

The securities of the credit card giant fell late by 2.5%, having fallen at 99.49 against the value of 99.49 Stock market fell today. The Dow Jones share is currently well below its 50-day and 200-day lines, while relative strength is weak. It came after the stock rose 1.2% to 99.21 on Wednesday.

Among the rival payment records was Visa (V) flat, Mastercard (MA) surged 0.8% and the industry group leader Green Dot (GDOT ) fell by 1.15%.

American Express shares plummeted since they reached an all-time high of 114.55 (December 3) as they attempted to break out of a mug with grip base, MarketSmith. The analysis shows.

The IBD Stock Checkup Tool is currently providing a slightly mixed picture. It has a good relative strength rating of 71, reflecting a solid price trend. However, the EPS rating of 74 does not meet the requirements of CAN SLIM, while its 3-year EPS growth rate of 10% is well below the 25% mark recommended by IBD founder William J. O & Neil. Overall, American Express shares have a good overall score of 79.

Dow Jones Shares Downgraded

CFRA research analyst Chris Kuiper downgraded American Express's stock last week to buy from a strong buy , He also lowered his price target from 120 to 110.

"We remain positive in the competitive position of AXP and believe that its wealthy client base will continue to outperform its rivals," the analyst said in a research note. "However, with the maturity of the credit cycle, we see a risk that both consumers and businesses spend less."

He also warned the compression of the net interest margin as the yield curve continues to flatten and is a risk to the Dow Jones Stock. Kuiper kept his estimate of American Express for 2018 unchanged at $ 7.40, but lowered it for 2019 by 5 cents to $ 8.10.

Last year, the Supreme Court filed a lawsuit allegedly inciting American Express suppressed customers to use credit cards with lower merchant fees.

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