TLDR
- AXP stock traded near $326 in premarket Friday, up about 1%, after closing Thursday at $325.17.
- Q3 adjusted EPS came in at $4.68, above the $4.50 estimate and up from $4.14 a year ago.
- Revenue grew 8.9% to $20.06 billion, just under the $20.12 billion estimate.
- Billed business rose 8% to $454 billion on a foreign-exchange adjusted basis.
- The stock is down 12% this year but up 7% from its Oct. 1 close of $302.09.
American Express (AXP) stock was trading near $326 in premarket on Friday, up about 1%. It closed Thursday at $325.17, a gain of 0.5%.
The move followed third-quarter results that topped profit estimates. Adjusted earnings came in at $4.68 per share, above the $4.50 Wall Street expected.
A year ago, the company earned $4.14 per share. That is a rise of about 13%.
Revenue grew 8.9% to $20.06 billion. That was a touch below the $20.12 billion analysts expected, according to FactSet.
Billed business, the company’s measure of card spending, rose 8% to $454 billion on a foreign-exchange adjusted basis. That was down slightly from $455.8 billion in the second quarter.
Spending and Guidance
Amex said growth came from higher card member spending and stronger net interest income. Rising card balances and card fee growth also helped.
CEO Stephen Squeri pointed to strength in billings, new acquisitions and card member retention. He also cited excellent credit quality.
Higher rates and sticky inflation have not slowed the mostly affluent cardholder base much. They are still swiping.
Amex narrowed its full-year adjusted earnings guidance to $17.60 to $17.90 per share. The prior range was $17.30 to $17.90.
The company said it remains on track for full-year revenue growth of 10%. Investors watch the stock closely because its cards are widely used by high earners and large companies.
Reports on the numbers differ. Investing.com cited a raised range of $18.30 to $18.60 and third-quarter EPS of $5.42.
This article uses the $4.68 figure, which matches the analyst comparison. Readers should check the earnings release for final numbers.
How the Stock Has Traded
AXP is down 12% this year as of Thursday’s close. The stock has been climbing back lately.
It has risen 7% since closing at $302.09 on Oct. 1, a recent bottom. That move also took it back above its 50-day moving average.
Investing.com said the stock was slightly lower in premarket trading Friday. Other reports showed a small gain.
The latest reading showed AXP near $326 in premarket trading on Friday, up about 0.6% from Thursday’s close.
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