Global payments company American Express (NYSE: AXP) will be announcing earnings results this Friday before market hours. Here’s what to look for.
American Express missed analysts’ revenue expectations last quarter, reporting revenues of $18.55 billion, up 12.8% year on year. It was a softer quarter for the company, with transaction volumes in line with analysts’ 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 17.4% year on year, improving from the 12.2% 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 Q3 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 5.5%, meeting analysts’ expectations, and Synchrony Financial reported flat revenue, in line with consensus estimates. Capital One traded up 2.4% following the results while Synchrony Financial was down 3%.
Read our full analysis of Capital One’s results here and Synchrony Financial’s results here.
Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. American Express is up 5.7% during the same time and is heading into earnings with an average analyst price target of $369.44 (compared to the current share price of $322.46).
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