American Express's Earnings: A Preview

American Express AXP is set to give its latest quarterly earnings report on Thursday, 2025-04-17. Here's what investors need to know before the announcement.

Analysts estimate that American Express will report an earnings per share (EPS) of $3.50.

The market awaits American Express's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

The company's EPS beat by $0.01 in the last quarter, leading to a 0.0% drop in the share price on the following day.

Here's a look at American Express's past performance and the resulting price change:

Stock Performance

Shares of American Express were trading at $257.86 as of April 15. Over the last 52-week period, shares are up 18.32%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on American Express

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding American Express.

A total of 14 analyst ratings have been received for American Express, with the consensus rating being Neutral. The average one-year price target stands at $317.43, suggesting a potential 23.1% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of FirstCash Hldgs and Enova International, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for FirstCash Hldgs, with an average 1-year price target of $137.0, suggesting a potential 46.87% downside.
• Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $134.5, suggesting a potential 47.84% downside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for FirstCash Hldgs and Enova International are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

American Express ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Get to Know American Express Better

American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.

Breaking Down American Express's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3 months period, American Express showcased positive performance, achieving a revenue growth rate of 8.73% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: American Express's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 12.45%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.13%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): American Express's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.79%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.69.

To track all earnings releases for American Express visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.