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American Express Company (AXP), headquartered in New York City, is a global leader in providing charge and credit card products, as well as travel-related services. With a market cap of $169.55 billion, AXP serves a wide array of customers, including individuals, small businesses, and corporations. Renowned for its premium customer service and loyalty programs, the company offers a range of financial products such as credit cards, charge cards, and travel services. AXP is scheduled to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, Jul. 19.
Ahead of the event, analysts expect AXP to report a profit of $3.22 per share, up 11.4% from $2.89 per share in the year-ago quarter. In the last four quarters, the company surpassed Wall Street’s bottom-line estimates in three and missed on another occasion. Its adjusted earnings of $3.33 per share for the last reported quarter surpassed the consensus estimate by 12.1%. This was due to high card member spending and increased net interest income.
For fiscal 2024, analysts expect AXP to report EPS of $12.98, up 15.8% from $11.21 in fiscal 2023. Fiscal 2025 EPS is expected to grow 15% year over year to $14.93.
AXP stock is up 25.8% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 16.1% returns and the iShares U.S. Financials ETF’s (IYF) 11.7% gains over the same time frame.
American Express has consistently outperformed the broader market, driven by strong revenue growth from high card member spending, increased net interest income, and effective cost management, resulting in higher profitability. The stock surged 6.2% on Apr. 19 after significantly surpassing Q1 earnings expectations, fueled by robust card member spending, strong fee-based income, and optimistic full-year revenue and earnings guidance.
The consensus opinion on AXP stock is optimistic, with an overall “Moderate Buy” rating. Out of 24 analysts covering the stock, nine advise a “Strong Buy” rating, two recommend a “Moderate Buy,” 11 suggest a “Hold,” and two recommend a “Strong Sell.” This configuration is slightly less bullish than three months ago when AXP had 11 “Strong Buy” ratings.
The average analyst price target for AXP is $230.36, which indicates that the stock trades at a premium.
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.
