What to Expect from American Express's Earnings
American Express (NYSE:AXP) is preparing to release its quarterly earnings on Friday, 2024-10-18. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect American Express to report an earnings per share (EPS) of $3.28.
Investors in American Express are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
The company's EPS beat by $0.23 in the last quarter, leading to a 0.0% drop in the share price on the following day.
Here's a look at American Express's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 3.26 | 2.95 | 2.64 | 2.94 |
| EPS Actual | 3.49 | 3.33 | 2.62 | 3.30 |
| Price Change % | -3.0% | 6.0% | 7.000000000000001% | -5.0% |
Tracking American Express's Stock Performance
Shares of American Express were trading at $281.68 as of October 16. Over the last 52-week period, shares are up 100.85%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on American Express
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding American Express.
The consensus rating for American Express is Neutral, based on 13 analyst ratings. With an average one-year price target of $271.31, there's a potential 3.68% downside.
Peer Ratings Overview
The following analysis focuses on the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Credit Acceptance received a Sell consensus from analysts, with an average 1-year price target of $400.0, implying a potential 42.01% upside.
- As per analysts' assessments, Enova International is favoring an Outperform trajectory, with an average 1-year price target of $90.5, suggesting a potential 67.87% downside.
Overview of Peer Analysis
The peer analysis summary presents essential metrics for Credit Acceptance and Enova International, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Kaspi.kz | Outperform | 37.20% | $513.15B | 18.86% |
| Credit Acceptance | Sell | 12.42% | $330.70M | -2.94% |
| Enova International | Outperform | 25.83% | $299.24M | 4.69% |
Key Takeaway:
American Express ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.
Discovering American Express: A Closer Look
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
Unraveling the Financial Story of American Express
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: American Express's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 8.5%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.
Net Margin: American Express's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 18.23%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.21%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): American Express's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.1% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 1.8, American Express adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for American Express visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.