American Express Company

New York Stock Exchange
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Neutral +5

American Express (AXP) Reports Earnings Tomorrow: What To Expect - Yahoo Finance

📅 American Express (AXP) is set to report earnings before market open this Thursday.

💰 Last quarter, the company missed analyst revenue expectations with $17.57 billion reported, up 10.6% year over year.

❌ Both revenue and earnings per share estimates were missed in the previous quarter.

📈 Analysts expect current quarter revenue growth to be 17.6% year on year, improving from last year's 8.8%.

📝 Analyst revenue estimates have seen majority upward revisions over the last 30 days, indicating growing bullish sentiment.

⚖️ Peer Synchrony Financial posted flat revenue missing estimates by 2.4%, while Capital One reported revenues up 52.3% falling short by 1.1%.

📊 Investor sentiment in the consumer finance segment is positive with shares up 11.8% on average over the last month.

📈 American Express shares have risen 9.7% during the same period, trading at $331.14 against an analyst price target of $356.15.

Bullish Signals
  • American Express has seen positive investor sentiment with shares up 9.7% over the last month, while peer consumer finance stocks have risen 11.8% on average.
  • Analysts covering American Express have grown increasingly bullish, evidenced by a majority of upward revenue estimate revisions over the last 30 days.
  • The market expects American Express's revenue to grow 17.6% year on year this quarter, which is an improvement from the 8.8% increase recorded in the same quarter last year.
  • American Expects current share price of $331.14 is below the average analyst price target of $356.15, indicating potential upside.
Risk Factors
  • American Express missed analysts' revenue expectations last quarter with revenues of $17.57 billion, while also missing EPS estimates.
  • Analysts covering American Express are seeing majority upward revisions over the last 30 days, suggesting the market expects a softer performance compared to the anticipated 17.6% revenue growth.
  • Peer companies like Synchrony Financial and Capital One have recently missed analysts' expectations, with Synchrony missing by 2.4% and Capital One falling short by 1.1%, indicating potential industry-wide softness.
  • While American Express stock is up 9.7% over the last month, it still trades below its average analyst price target of $356.15 compared to the current share price of $331.14.
Full Analysis
American Express (NYSE: AXP) is set to report its earnings for the most recent quarter ahead of market open this Thursday, with analysts maintaining bullish sentiment despite missing estimates last period. In the previous quarter, the company posted revenues of $17.57 billion, reflecting a 10.6% year-over-year increase, though this fell short of analyst revenue expectations and missed earnings per share (EPS) forecasts as well. This softer performance highlighted challenges in meeting projected growth targets, yet heading into this upcoming report, the market anticipates AXP’s revenue to expand at a faster rate of 17.6% year over year, an improvement from the 8.8% growth recorded in the same quarter last year. Analysts covering American Express have shown increasing confidence recently, with the majority of revenue estimates receiving upward revisions over the last 30 days. This optimism is mirrored by investor sentiment in the broader consumer finance sector, where peers like Synchrony Financial and Capital One recently reported their Q1 results, though both missed analyst expectations—Synchrony recorded flat year-on-year revenue missing estimates by 2.4%, while Capital One saw revenue rise 52.3% but miss estimates by 1.1%. Despite these peer misses, the overall consumer finance segment has seen share prices climb an average of 11.8% over the past month, with American Express shares rising 9.7% during the same timeframe. Current market valuations suggest a positive outlook for the stock, with AXP trading at $331.14 per share compared to an average analyst price target of $356.15. The company is thus positioned as a buy ahead of earnings given the elevated price targets and improving revenue growth expectations, even after last quarter's miss. Investors will be watching how the company navigates this improved growth outlook alongside its peer performance to determine if analysts' bullish revisions are justified. The consensus among market participants remains that American Express is poised for potential gains following this report, supported by strong underlying demand and sector-wide strength.