What to Expect When American Express Reports on Friday

Banking, finance, and taxes

Published: July 18, 2019 11:35 am

Last Updated: January 30, 2020 6:24 pm

American Express Co. (NYSE: AXP) is scheduled to release its second-quarter financial results before the markets open on Friday. The consensus estimates call for $2.04 in earnings per share (EPS) and $10.82 billion in revenue. The same period of last year reportedly had $1.84 in EPS and $10 billion in revenue.

In the first quarter, Amex said that consolidated total revenues net of interest expense increased 7% year over year. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 9%. The increases were broad-based and reflected higher card member spending, loan volumes and fee income.

Consolidated provisions for losses were $809 million, up 4% from $775 million a year ago. The increase reflected continued growth in the loan and receivable portfolios and higher net lending write-offs, partially offset by a smaller reserve build compared to a year ago.

In terms of its first quarter, Amex reported as follows:

Global Consumer Services Group reported first-quarter net income of $821 million, down 1% from $826 million a year ago.

Global Commercial Services reported first-quarter net income of $586 million, up 7% from $546 million a year ago.

Global Merchant and Network Services reported first-quarter net income of $631 million, up 22% from $516 million a year ago.

Corporate and Other reported first-quarter net loss of $489 million, compared with a net loss of $254 million a year ago

Excluding Thursday’s move, Amex had outperformed the broad markets, with its stock up about 33% year to date. In the past 52 weeks, the stock was up closer to 26%.

A few analysts weighed in on Amex ahead of the report:

Wells Fargo has an Outperform rating and a $140 price target.
Deutsche Bank has a Buy rating with a $142 price target.
Merrill Lynch has a Buy rating with a $145 price target.
Jefferies has a Hold rating with a $130 price target.
William Blair has an Outperform rating.

Shares of Amex traded up about 0.5% at $127.76 on Thursday, in a 52-week range of $89.05 to $129.34.

24/7 Wall St.
SunTrust, Cautious on Semiconductors Due to Trade Issues, Has 4 Top Buys

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!