Americans will be getting an unexpected gift on Friday, with the company announcing a big jump in its annual sales outlook.
“The company will release its full-year earnings results on Friday morning,” the company said in a statement.
“The company has been growing at a rate of 6.7% year over year.”
The move comes as American Express continues to struggle to recover from a major cyber breach in January and a cyber breach on Feb. 15 that compromised the personal information of nearly 6 million people.
The company had previously forecast the earnings would fall as a result of those two incidents, but that outlook has since been revised downward to $0.20 per share, down from $0,20 per market share in February.
“Our forecast for Q2 2016 was revised upward from $1.08 to $1,056,” the statement said.
“That’s a reduction of $1 billion or about 2.5% in the earnings per share.”
It’s a big drop from the $2.38 per share the company reported in the second quarter of last year, but American Express is still forecast to report $2,719 million in revenue in the same quarter.
It will also report a net loss of $2 billion in the quarter.
The stock is expected to be one of the biggest sellers among all companies in the S&P 500, which was up 4.7 per cent Friday, to $55.80.
It was down more than 5 per cent from a year ago.
It’s also down more from the 10-year high of $108.90 set on Feb 2, the same day the company disclosed that it was going to release data on a massive breach.
“It’s one of those situations where the markets really get oversold,” said Mark Waddell, chief investment officer at Capital Advisors.
“It’s not just an overreaction by the market to the cyber breach.
It’s a real opportunity for us to be able to be even more aggressive with our cybersecurity posture.”
The stock has gained more than 4 per cent over the last two weeks, but the company is expected be able only to sustain that gain.
“If you look at the company’s financials and you see that its revenues are down, you know they are a little more conservative,” said Waddells chief investment analyst, Mark St. Clair.
“You look at their cash flow and you say, ‘How can they sustain that?’
That’s the only way they can sustain that.”
The company said it will be releasing more information on its cybersecurity plan in the coming weeks.