[ad_1]
American Express (AXP), earnings were disappointing on Thursday night, and Dow Jones stocks were also cautious about the results for 2019.
X
American Express Earnings
estimates: According to Wall Street, American Express earnings per share rose 14 percent to $ 1.80, according to Zacks Investment Research. The turnover is expected to climb 20% to 10.6 billion dollars.
Results: EPS of $ 1.74 on revenues of $ 10.47 billion. Consumer service revenues increased 11% to $ 5.6 billion. Commercial service revenues increased 8% to $ 3.3 billion. The market and merchant services business figure remained stable at $ 1.6 billion.
Consolidated loss provisions were $ 954 million, up 14% due to loan portfolio growth and higher write-off rates. Consolidated expenses increased 9% to $ 7.7 billion, primarily due to higher rewards and other customer engagement costs.
Perspective: EPS 2019 is between $ 7.85 and $ 8.35, with a median of $ 8.10 lower than the consensus estimate of $ 8.17, with expected revenue growth of 8% to 10% higher consensus forecasts of 7.7%.
"We continue to see very good returns on the investments we have made to gain market share and expand our reach," said Stephen Squeri, president and chief executive officer. "Our growth in 2018 was widespread and well-balanced across geographies and industries." Cardmember spending rose 8% after adjusting for the exchange rate, a sixth straight quarter. with revenue growth of at least 8%, which is also explained by the increase in cardholder expenses, loans and card fees. "
American Express Stock
Credit card giant stocks lost 2.5% late after closing up 0.1% to 99.49 on the stock market today. Dow Jones stocks are currently trading well below their 50 and 200 day lines, while their relative strength line seems weak. It comes after the stock closed up 1.2% to 99.21 on Wednesday.
Among the rival payment stocks, Visa (V) was flat, MasterCard (MA) rose 0.8% and the leader of the group of the industry Green Point (GDOT) fell 1.15%.
The stock of American Express has collapsed since it reached an all-time high on Dec. 114.55, while it was trying to escape from a cup with handle base, reveals the badysis of MarketSmith.
IBD's stock check tool gives a somewhat uneven picture at the moment. It has a good strength rating of 71, which reflects a strong price performance. However, its EPS of 74 does not meet CAN SLIM's requirements, while its 10% BPA growth rate over 3 years is well below the 25% threshold recommended by IBD's founder, William J. O & # 39; ; Neil. Overall, American Express shares have a rather good composite rating of 79.
The Dow Jones Degrades
Chris Kuiper, an badyst at CFRA Research, demoted the American Express title last week. He also reduced his price target from 110 to 110.
"We remain positive on AXP's competitive positioning and believe that its more affluent client base will continue to outpace competing customers," said the badyst in a research note. "However, as the credit cycle matures, we believe there is an increased risk of slowing spending by consumers and businesses."
He also warned that the compression of the net interest margin as the yield curve continues to flatten out, the risk for Dow Jones stock is high. Kuiper has maintained its estimate of earnings per share of American Express for 2018 at $ 7.40, but has lowered it from 5 cents to 2019 for 2019.
Last year, the Supreme Court began legal action alleging that American Express had removed competition by preventing retailers from encouraging customers to use credit cards with less transaction fees. high.
YOU WILL LIKE ALSO:
The removal of Netflix could be exactly what this FANG action needs
Morgan Stanley tumbles after EPS, the recipes are sorely lacking
Stock IBD of the day: this software company is among the best choices
Banks and Financials: Latest News and Analysis
Want more IBD videos? Subscribe to our YouTube channel!
Source link
