AMERICAN EXPRESS MISSES PROFIT EXPECTATIONS, STOCK FALLS BELOW MA5
In the Premarket trading session on Friday, American Express’s stock was trading at 97.74- lower by 1.76% as compared to its previous close.
The financial services company reported fourth-quarter revenue and earnings on Thursday that narrowly missed market expectations. American Express generated EPS of $1.74 for the fourth quarter. The EPS was below the consensus estimates of $1.80. American Express brought in $10.47 billion in revenue for the quarter, an 8% rise from a year earlier, according to the company. Still, the number was below the market expectation of $10.56 billion.
The credit card issuer more than doubled its annual profit in 2018 from a year ago. American Express brought in $6.92 billion for 2018 compared with $2.75 billion in 2017.
On the technical front, the current price is below the MA5 (98.74). The current price is above the middle line of the Bollinger Bands but is heading downwards. The current price is above the MA20 (96.35). The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 98.10 TAKE PROFIT AT 97.20 STOP LOSS AT 98.60