Stock markets closed poorly on Thursday, with the Dow Jones, S&P 500, and NASDAQ indexes all falling by over a full percentage point. However, there are some stocks performing well in the pre-market, and American Express Co. (NYSE: AXP) is one of them.
The credit card and travel services giant has just released its Q3 earnings report, and it’s all good news for investors. The report is driving confidence and could help to keep stock strong during what has been a volatile month.
Revenue Grows by 9% for the Third Quarter
In its investor report on Thursday, American Express revealed that it had grown revenue by 9% compared to Q3 last year. Revenue was a total of $10.14 billion. This takes earnings per share up to $1.88, a notable increase over the predicted $1.77 per share.
With only one more quarter left in its fiscal year, American Express believes it will be able to achieve a minimum 9% full year revenue increase.
Chief Executive Stephen J. Squeri told investors that “We delivered strong results this quarter driven by higher card member spending, fee income and loans.”
The company is benefiting from a stronger economy and increased consumer confidence. Despite federal interest rates rising this year, consumers are still willing to spend and are more likely to use credit than in previous years.
American Express Stock is Performing Strongly for the Year to Date
October’s stock market has been highly volatile, with single day slides that haven’t been seen since February. Some stocks have lost all their growth from the last three months, but American Express is one company that is still holding its gains.
- Strong 3-month performance means that despite sweeping market losses, American Express is still up 2.69%.
- For the year to date, stock is up 3.55%.
- Strong performance at the end of 2017 means that stock is still up 11.67% over 12 months.
Strong Growth Could Bring New Investors on Board
Since 2014, A. Express hasn’t grown revenue more than 2.87% in any single fiscal year. Being on track to achieve at least 9% growth for this year is a big deal. Interest in the stock has been mild throughout the second half of 2018, but this positive news could be a driving factor to bring stock value up and increase returns for existing investors.
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