American Express Company Earnings

Analyst Estimates of American Express Company Earnings

What is an Earnings Date

An earnings date is typically considered to be the date that a company publicly announces its earnings. Many companies in the US stock market do earnings announcements once per quarter.

Earnings announcements are typically accompanied by commentary from the company that explains the earnings performance and speaks to future earnings prospects.

Earnings announcements can cause a company’s stock price to change abruptly, so earnings dates are closely monitored by some investors.

American Express Company Earnings: Historical

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“American Express Company Earnings” Can Refer to the American Express Company Earnings Date

Some people say “American Express Company earnings” as a shortform way to refer to the earnings date.

For example, someone might say, “I plan to hold my American Express Company position through earnings.” That typically means the person is going to hold their position through the upcoming earnings date.

Owning American Express Company Stock on the Earnings Date

If you own American Express Company stock (AXP) on the earnings date, then you will be exposed to the potential price volatility that often accompanies earnings announcements.

A company’s earnings typically have a big impact on its stock price, which explains why the stock price for American Express Company might exhibit major fluctuations on the day of the earnings announcement. The price fluctuations can go in either direction (up or down), representing a larger potential investment risk and reward than many other days of the year.

There is often a big audience of investors involved with trading American Express Company shares of stock on its earnings day. This means there is typically more trading volume, liquidity, and price volatility on the day earnings are announced.

These features are attractive to some types of active traders who are looking for stocks that exhibit large price movements and substantial volume.

Owning American Express Company Options on the Earnings Date

If you own American Express Company options on the earnings date, then you will be exposed to the potential price volatility that often accompanies earnings announcements.

In addition, the extrinsic values of American Express Company options that overlap earnings dates are often higher than other days of the year. In other words, the premiums you pay to own American Express Company options are typically higher during that period. In particular, they are frequently higher immediately before earnings and on the day they’re announced.

This makes sense considering that prices are often more volatile on earnings dates for American Express Company. That potential volatility is a key factor that affects the premium cost of owning options.

Once the earnings announcement is done and the anticipated price volatility has gone down, the extrinsic values of American Express Company options often go down. This is sometimes referred to as volatility crush.

Learning More American Express Company Earnings

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