AXP Earnings: American Express Reports Mixed Q3 Results, Raises Forecast
Market News

AXP Earnings: American Express Reports Mixed Q3 Results, Raises Forecast

Story Highlights

American Express reported mixed results for the third quarter.

American Express (AXP) reported mixed results for the third quarter. The payments processing company generated earnings of $3.49 per share, up 5.8% year-over-year, and exceeded the consensus estimate of $3.38 per share. However, it slightly lagged analysts’ revenue expectations. Shares were down about 4% in Friday’s pre-market trading.

AXP’s Q3 Revenues Driven by Higher Card Spending

Furthermore, AXP posted revenues of $16.6 billion, an increase of 8% year-over-year, compared to Street estimates of $16.7 billion. AXP’s revenues in the third quarter were driven by an increase of 6% in total spending by card members. Further, revenues generated through card fees grew 18% year-over-year.

In fact, according to the TipRanks’ Bulls Say, Bears Say Tool, analysts bullish on AXP believe that the company is “better equipped than competitors to weather economic softness due to a more affluent card base and is likely to maintain strong mid-teens growth over time.”

AXP Raises FY24 Guidance

Looking ahead, AXP raised its FY24 guidance to the range of $13.75 to $14.05 per share, up from its prior guidance between $13.30 and $13.80 per share. For reference, analysts were expecting AXP to report full-year earnings of $13.28 per share. Additionally, AXP estimates its revenues to grow by around 9% year-over-year in FY24.

Is AXP a Buy or Sell?

Analysts remain sidelined about AXP stock, with a Hold consensus rating based on six Buys, 10 Holds, and two Sells. Over the past year, AXP has surged by more than 90%, and the average AXP price target of $269.53 implies a downside potential of 5.7% from current levels. These analyst ratings are likely to change following AXP’s results today.

See more AXP analyst ratings

Related Articles
TheFlyAmerican Express price target raised to $301 from $280 at BofA
Sheryl ShethBerkshire’s Cash Swells to $325B in Q3 on Apple Stock Sale and No Buybacks
TheFlyBerkshire reports Q3 operating earnings $10.09B, consensus $10.9B
Go Ad-Free with Our App