American Express (AXP) Expected to Post Earnings of $1.75 Per Share

Wall Street analysts expect that American Express (NYSE:AXP) will announce earnings of $1.75 per share for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have issued estimates for American Express’ earnings. The highest EPS estimate is $1.81 and the lowest is $1.64. American Express reported earnings of $1.50 per share during the same quarter last year, which would indicate a positive year-over-year growth rate of 16.7%. The company is scheduled to issue its next earnings results on Wednesday, October 17th.

On average, analysts expect that American Express will report full year earnings of $7.24 per share for the current fiscal year, with EPS estimates ranging from $6.96 to $7.35. For the next financial year, analysts expect that the firm will report earnings of $8.05 per share, with EPS estimates ranging from $7.81 to $8.37. Zacks Investment Research’s earnings per share averages are an average based on a survey of research analysts that that provide coverage for American Express.

American Express (NYSE:AXP) last released its quarterly earnings results on Wednesday, July 18th. The payment services company reported $1.84 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.83 by $0.01. The firm had revenue of $10 billion during the quarter, compared to analyst estimates of $10.05 billion. American Express had a return on equity of 30.08% and a net margin of 9.23%. The business’s revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.47 EPS.

Several brokerages recently weighed in on AXP. UBS Group upgraded American Express from a “hold” rating to a “buy” rating in a research note on Friday, July 20th. Oppenheimer set a $113.00 target price on American Express and gave the stock a “buy” rating in a research note on Wednesday, July 18th. DZ Bank upgraded American Express from a “hold” rating to a “buy” rating in a research note on Friday, July 20th. BMO Capital Markets boosted their target price on American Express from $103.00 to $106.00 and gave the stock a “market perform” rating in a research note on Thursday, July 19th. Finally, Stephens set a $97.00 target price on American Express and gave the stock a “hold” rating in a research note on Friday, June 29th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and fourteen have given a buy rating to the company. American Express currently has an average rating of “Hold” and a consensus price target of $108.83.

In related news, major shareholder Ventures Fund Vii L.P. Vivo bought 20,142,123 shares of the stock in a transaction dated Thursday, August 30th. The shares were purchased at an average price of $0.17 per share, for a total transaction of $3,424,160.91. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Stephen J. Squeri sold 12,500 shares of the company’s stock in a transaction dated Wednesday, August 1st. The stock was sold at an average price of $99.73, for a total value of $1,246,625.00. Following the completion of the sale, the chief executive officer now owns 191,971 shares in the company, valued at approximately $19,145,267.83. The disclosure for this sale can be found here. In the last quarter, insiders have sold 47,448 shares of company stock worth $4,942,168. Company insiders own 0.20% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of AXP. Destination Wealth Management boosted its stake in shares of American Express by 165.4% in the second quarter. Destination Wealth Management now owns 1,059 shares of the payment services company’s stock worth $104,000 after buying an additional 660 shares during the last quarter. Tuttle Tactical Management purchased a new stake in shares of American Express in the second quarter worth about $105,000. Archford Capital Strategies LLC purchased a new stake in shares of American Express in the first quarter worth about $123,000. Private Ocean LLC boosted its stake in shares of American Express by 14,070.0% in the first quarter. Private Ocean LLC now owns 1,417 shares of the payment services company’s stock worth $132,000 after buying an additional 1,407 shares during the last quarter. Finally, Kiley Juergens Wealth Management LLC purchased a new stake in shares of American Express in the second quarter worth about $148,000. Hedge funds and other institutional investors own 82.91% of the company’s stock.

AXP opened at $109.56 on Monday. American Express has a 12 month low of $86.07 and a 12 month high of $110.01. The company has a debt-to-equity ratio of 2.67, a current ratio of 1.92 and a quick ratio of 1.92. The firm has a market capitalization of $92.89 billion, a PE ratio of 18.66, a P/E/G ratio of 1.49 and a beta of 1.17.

American Express announced that its board has authorized a stock buyback plan on Thursday, June 28th that permits the company to buyback $3.40 billion in outstanding shares. This buyback authorization permits the payment services company to reacquire up to 4.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

About American Express

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.

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