American Express Company shares rose nearly 6% on Thursday after the company reported better-than-expected first quarter financial results following the bell on Wednesday. Revenue rose 11.6% to $9.72 billion – beating consensus estimates by $580 million – while earnings per share of $1.86 beat consensus estimates by 15 cents per share. Card member spending rose 12%, while the effective tax rate dropped from 32% to 22%.
Analysts responded favorably to the financial results on Thursday morning, which helped send shares higher on the day. Goldman Sachs called the earnings beat the best since the third quarter of 2016, adding that full-year guidance could prove to be conservative. Meanwhile, Wells Fargo analysts noted that the solid credit performance eliminates one of the key points that bears have made and maintained an Outperform rating on American Express shares with a $115 price target. (See also: Why American Express Shares May Jump 14%.)
American Express shares moved sharply higher after a strong first quarter, but traders will be closely watching these key levels ahead. …read more
Read more here: American Express Stock Breaks Out to Retest Highs