American Express Poised for Strong Fourth Quarter Earnings Release
Analysts anticipate a significant rise in profits as the credit card leader prepares to unveil its results.
American Express Company (AXP), headquartered in New York, functions as a comprehensive payments provider through its segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. With a market capitalization of $213.5 billion, the company’s operations reach across the Americas, Indo-Pacific, Europe, Africa, and beyond.
Upcoming Earnings Report and Analysts’ Expectations
The credit card titan is scheduled to announce its fourth-quarter earnings on Friday, January 24, before markets open. Analysts forecast a non-GAAP profit of $3.02 per share, a notable increase of 15.3% compared to last year’s $2.62 per share. Amex has showcased a mixed earnings surprise trend, with three beats and one miss over the last four quarters. In the most recent quarter, the adjusted EPS grew by 5.8% year-over-year to $3.49, surpassing Wall Street expectations by 6.7%.
Future Earnings Projections
Looking ahead to fiscal 2024, analysts predict an adjusted EPS of $13.41, marking a 19.6% jump from $11.21 in fiscal 2023. Additionally, for fiscal 2025, Amex’s earnings are expected to rise by 13.2% year-over-year to reach $15.18.
Impressive Stock Performance
Over the past year, American Express’s stock has surged nearly 62.7%, greatly outperforming the S&P 500 Index’s ($SPX) return of 26.3% and the Financial Select Sector SPDR Fund’s (XLF) increase of 29.8% during the same period.
Recent Earnings Insights
Following its Q3 earnings report on October 18, Amex’s stock dipped by 3.2%. The company disclosed an 8.2% year-over-year revenue increase, net of interest expenses, totaling $16.6 billion—slightly below analyst expectations. However, it remains strong with 10 consecutive quarters of record revenue, reflecting the resilience of its business model and ongoing investments.
Impressively, total card member spending has risen by 6%, alongside an 18% growth in card fee revenue. The company added 3.3 million new premium card members, demonstrating strong retention rates, solid credit performance, and effective expense management.
Positive Market Outlook
Given its robust quarterly performance, Amex has revised its full-year adjusted EPS guidance to $13.75 – $14.05, up from an earlier range of $13.30 – $13.80.
The current consensus on AXP stock is moderately optimistic, holding an overall “Moderate Buy” rating. Among the 28 analysts following the stock, eight recommend a “Strong Buy,” two advise a “Moderate Buy,” 15 suggest a “Hold,” and three propose a “Strong Sell.” As of this moment, American Express trades above its average price target of $287.60.
On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information and data are solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here. More news from Barchart
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