AmEx stock shock

Daily Freeman (Kingston, NY) - - BUSINESS -

Com­pany Spotlight Amer­i­can Ex­press shares posted their big­gest gain in seven years Thurs­day after the credit card com­pany shocked an­a­lysts with stronger-than-ex­pected earn­ings and an im­proved out­look.

New York-based AmEx stock leaped 9 per­cent after it re­ported earn­ings of $1.20 per share for the third quar­ter, far sur­pass­ing the 97 cents-a-share fore­cast by an­a­lysts.

The credit card gi­ant said av­er­age card-holder spend­ing, a closely watched met­ric for the com­pany, jumped 10 per­cent in the quar­ter. The av­er­age fee paid per card also in­creased.

“While there’s more work and more chal­lenges ahead, the in­vest­ments we’re mak­ing are de­signed to po­si­tion us for prof­itable, sus­tain­able growth over the longer term,” Amer­i­can Ex­press Chair­man and CEO Ken­neth Chenault said in a pre­pared state­ment.

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