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Valued at a market cap of $193.2 billion, American Express Company (AXP) operates as an integrated payments company. The New York-based company offers a wide range of credit and charge cards with exclusive travel & lifestyle benefits. Also, it provides merchant acquisition and processing services and fraud prevention services. AXP is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Oct. 18.
Ahead of this event, analysts expect the credit service provider to report a profit of $3.27 per share, a marginal decline from $3.30 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
In Q2, the company reported an EPS of $3.49, which topped the consensus estimates by 8.4%. The outperformance was primarily driven by an increase in net interest income, stable growth in billings, double-digit growth in card fee revenues, and new card acquisitions.
For fiscal 2024, analysts expect AXP to report an EPS of $13.14, up 17.2% from $11.21 in fiscal 2023.
Shares of American Express have rallied 44.9% on a YTD basis, significantly outperforming both the S&P 500 Index's ($SPX) 19.5% rise and the Financial Select Sector SPDR Fund’s (XLF) 20.6% returns over the same period.
Despite beating Wall Street’s earnings estimates, shares of AXP fell 2.7% after its Q2 earnings release on Jul. 19, primarily due to lower-than-expected revenues. Its revenue of $16.3 billion lagging behind the consensus estimates of $16.6 billion.
Analysts' consensus view on American Express’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, 10 recommend a "Strong Buy," two suggest "Moderate Buy," 14 suggest “Hold,” and two indicate a “Strong Sell” rating. As of writing, the stock is trading above its mean price target of $250.32.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
