Why American Express Jumped 18% in January
Shares of consumer finance giant American Express (NYSE: AXP) soared 18% in January, according to data from S&P Global Market Intelligence. It posted an outstanding fourth-quarter report with excellent guidance for the new year.
The stock market ended last year down nearly 20%, with many economists warning of a possible recession, in addition to inflation and global macroeconomic volatility. Rising interest rates in particular are affecting financial companies. But American Express has been boasting stellar performance despite the drama.
In the 2022 fourth quarter, revenue increased 17% over last year, and billed volume increased 12%. Net income dipped 9% fueled by an increase in provisions for losses, a result of rising interest rates and higher potential for defaults. Revenue beat Wall Street analyst estimates, although earnings per share (EPS) came in slightly below. Full-year sales increased 25% over last year, and EPS of $9.85 were above management's expectations, although they were down from $10.02 last year.
Source Fool.com
