What To Expect From American Express’s (AXP) Q2 Earnings
Global payments company American Express (NYSE:AXP) will be reporting earnings this Friday before market hours. Here’s what to expect.
American Express missed analysts’ revenue expectations last quarter, reporting revenues of $17.66 billion, up 11.6% year on year. It was a slower quarter for the company, with a beat of analysts’ EPS estimates.
Is American Express a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting American Express’s revenue to grow 19.8% year on year, improving from the 9.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at American Express’s peers in the consumer finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 25.8%, meeting analysts’ expectations, and Synchrony Financial reported revenues up 1.9%, falling short of estimates by 0.7%. Capital One traded down 2.3% following the results while Synchrony Financial’s stock price was unchanged.
Read our full analysis of Capital One’s results here and Synchrony Financial’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 5.3% on average over the last month. American Express is up 3.4% during the same time and is heading into earnings with an average analyst price target of $374.94 (compared to the current share price of $349.26).
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