Banking, finance, and taxes
What to Expect From American Express Earnings

Published:
Last Updated:
American Express Co. (NYSE: AXP) is scheduled to release its second-quarter earnings report after the markets close on Wednesday. Considering the recent earnings wins from other major financial institutions American Express might be in line for a win as well.
The consensus estimates from Thomson Reuters call for $1.95 in earnings per share (EPS) on revenue of $8.4 billion. In the same period of last year, it posted EPS of $1.42 and $8.28 billion in revenue.
American Express could make one think that stocks in general are in a bear market. The company’s decline since the beginning of 2015 looks very much like its 2008/2009 decline. It may be having some problems, but a firm bottom looks to have been established at $50, which has been long-term major technical level since 2000.
The chances of the credit card company breaking through that level without some kind of major economic depression are incredibly low, limiting downside considerably. In general, a boom means more spending, which means more earnings for credit card companies. Even a minor recovery halfway to previous highs would translate to 15% gains in this case.
The company plans to increase its quarterly dividend by 10% to $0.32 per share and will increase its buyback up to $3.3 billion of common shares through mid-2017. Its market cap is roughly $60 billion.
A few analysts weighed in on American Express prior to the release of the earnings report:
So far in 2016, American Express has underperformed the broad markets, with the stock down about 6%. Over the past 52 weeks, the stock is actually down closer to 18%.
Shares of American Express were trading down 0.7% at $63.69 on Wednesday, with a consensus analyst price target of $67.64 and a 52-week trading range of $50.27 to $81.66.
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.