Shares of financial products and services provider American Express (NYSE:AXP) are rising in the pre-market session today after the company announced its fourth-quarter numbers. Revenue rose 16.9% year-over-year to $14.2 billion but missed the cut by $50 million.
EPS at $2.07 too fell short of expectations by $0.16. Despite the earnings miss, AXP delivered promising metrics with new card accounts at 12.5 million in 2022. At the same time, AXP is seeing higher card member spending and increased average loan volumes. Further, it is planning to boost its quarterly dividend by 15% to $0.60 per share.
Looking ahead, for 2023, the company sees revenue rising in the range of 15% and 17% while EPS is anticipated to hover between $11 and $11.40.
Overall, Wall Street has a consensus price target of $156.60 on AXP, implying the stock is fairly priced at the current level. That’s after a nearly 11% price drop in AXP shares over the past year.
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