AmEx stock shock
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.