Impressive Fourth quarter Results of American Express:

American Express stock name is listed with the ticker name of AXP is the largest credit card issuing company in the world by the purchase volume. The company is capable of processing the thousands of millions of financial transactions on daily basis and is considered as the premium network for the high spending card members. This credit card issuing company is also helping the small business owners to succeed through the delivery of the purchasing power as well as the flexibility and financial stability. The customers are also provided commercial payment tools and means and they are also offered the expertise so that it is helpful for them to control themselves their spending and hence saving billions of dollars.

American Express fourth quarter results reported for fiscal 2013 shows highly impressive performance. The net income rise 100% to $ 1.3 billion. Card member spending rises 8% during the holiday which is the strong holiday expenditure among its members thanks to its impressive quarterly results.

 American Express brings 1.5 times as much net income despite of the low profit margin ratio of 15.4% versus master cards 38.2% which is mainly because high end customers are cater by the Amex and it has higher annual card fees. The popularity of American Express card is also because American Express cards fraud rates are very low and enjoy the good credit quality. Its rival companies operate an open loop network whereas the American Express network of closed loop will facilitates it to run a single fraud screen effectively.

According to the management of American Express, the billing earnings has leveraged  economic growth of US as the previous trends shows that the main source of revenue is customer billings which is increased by 4.5 times  comparing with the economic growth of the country. This reveals that when the economies grow by 1% then the revenue of the company from billing will grow by 4.5% which will reflect in the stock price. The expected growth rate of the economy of US in 2014 will be 3% and the American Express estimates that it’s billing to climb 13.5% in 2014. The stronger billing measures taken to control spending will increases credit card company profits in 2014. The bottom line grows by 11% from last year in fiscal 2014.

The American Express stock price suggests that it is fast growing and stable company as more and more people are switching to the AXP services for its numerous tools to satisfy the customer needs. For example, the company offers the information management and marketing tools for helping the entrepreneurs and merchants to build the business. This company is also regarded as the most reputed credit card issuing company that has never lost the customer loyalty and satisfaction with its services. The innovative ideas that keep emerging in terms of the services of the company also highlight the fact that the American Express stock price is stable and are profitable for all of those investors who want to buy the shares of the AXP either in bulk or at smaller quantity.

Summary:

The Article highlights the impressive performance of AXP in the fourth quarter results reported for fiscal 2013. The net income rise 100% to $ 1.3 billion. Card member spending rises 8% during the holiday which is the strong holiday expenditure among its members thanks to its impressive quarterly results. American Express brings 1.5 times as much net income despite of the low profit margin ratio of 15.4% versus master cards 38.2% which is mainly because high end customers are cater by the Amex and it has higher annual card fees. The popularity of American Express card is also because American Express cards fraud rates are very low and enjoy the good credit quality. When the US economy grows by 1% then the revenue of the company from billing will grow by 4.5% which will reflect in the stock price. Hence The American Express stock price suggests that it is fast growing and stable company as more and more people are switching to the AXP services for its numerous tools to satisfy the customer needs.