American Express Company (NYSE:AXP) Expected to Post Quarterly Sales of $8.21 Billion
Equities research analysts predict that American Express Company (NYSE:AXP) will report sales of $8.21 billion for the current quarter, according to Zacks. Six analysts have made estimates for American Express’ earnings, with the highest sales estimate coming in at $8.29 billion and the lowest estimate coming in at $8.12 billion. American Express reported sales of $7.77 billion during the same quarter last year, which would suggest a positive year-over-year growth rate of 5.7%. The firm is expected to announce its next earnings report on Wednesday, October 18th.
On average, analysts expect that American Express will report full year sales of $8.21 billion for the current year, with estimates ranging from $32.60 billion to $33.02 billion. For the next financial year, analysts expect that the business will post sales of $34.66 billion per share, with estimates ranging from $34.18 billion to $35.06 billion. Zacks’ sales calculations are a mean average based on a survey of sell-side analysts that cover American Express.
American Express (NYSE:AXP) last released its earnings results on Wednesday, July 19th. The payment services company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.44 by $0.03. American Express had a net margin of 14.11% and a return on equity of 21.99%. The business had revenue of $8.31 billion for the quarter, compared to the consensus estimate of $8.20 billion. During the same period in the previous year, the firm earned $2.10 EPS. The business’s revenue for the quarter was up .9% on a year-over-year basis.
Several brokerages have recently issued reports on AXP. Nomura raised shares of American Express from a “reduce” rating to a “neutral” rating and raised their target price for the company from $63.00 to $78.00 in a research note on Thursday, April 27th. Barclays PLC reiterated a “buy” rating and issued a $83.00 price target on shares of American Express in a research report on Thursday. Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $93.00 price target (down from $97.00) on shares of American Express in a research report on Friday, April 21st. Wells Fargo & Company reiterated a “market perform” rating and issued a $80.00 price target on shares of American Express in a research report on Sunday, May 21st. Finally, BMO Capital Markets reiterated a “hold” rating and issued a $84.00 price target on shares of American Express in a research report on Thursday, June 1st. Four analysts have rated the stock with a sell rating, thirteen have issued a hold rating and thirteen have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $83.53.
In other American Express news, insider Douglas E. Buckminster sold 3,000 shares of American Express stock in a transaction on Friday, April 28th. The shares were sold at an average price of $79.24, for a total transaction of $237,720.00. Following the completion of the transaction, the insider now directly owns 55,486 shares of the company’s stock, valued at $4,396,710.64. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul D. Fabara sold 5,981 shares of American Express stock in a transaction on Friday, July 21st. The stock was sold at an average price of $85.88, for a total transaction of $513,648.28. The disclosure for this sale can be found here. Insiders sold 60,831 shares of company stock valued at $4,921,191 over the last three months. 0.67% of the stock is owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in AXP. Adams Diversified Equity Fund Inc. boosted its position in American Express by 25.1% in the second quarter. Adams Diversified Equity Fund Inc. now owns 378,300 shares of the payment services company’s stock worth $31,868,000 after buying an additional 75,900 shares during the period. Quantitative Systematic Strategies LLC boosted its position in American Express by 119.4% in the second quarter. Quantitative Systematic Strategies LLC now owns 24,607 shares of the payment services company’s stock worth $2,058,000 after buying an additional 13,389 shares during the period. Bridges Investment Counsel Inc. bought a new position in American Express during the second quarter worth approximately $235,000. Hermes Investment Management Ltd. bought a new position in American Express during the second quarter worth approximately $417,000. Finally, Murphy Capital Management Inc. boosted its position in American Express by 0.4% in the second quarter. Murphy Capital Management Inc. now owns 22,750 shares of the payment services company’s stock worth $1,916,000 after buying an additional 100 shares during the period. 82.60% of the stock is owned by hedge funds and other institutional investors.
American Express (NYSE AXP) traded up 0.28% during mid-day trading on Friday, hitting $85.59. 3,570,375 shares of the company were exchanged. The stock has a market cap of $76.50 billion, a P/E ratio of 15.45 and a beta of 1.18. The company has a 50 day moving average of $82.61 and a 200 day moving average of $79.25. American Express has a 12-month low of $59.50 and a 12-month high of $86.28. American Express also saw some unusual options trading activity on Wednesday. Stock investors purchased 21,700 put options on the stock. This is an increase of approximately 544% compared to the typical daily volume of 3,370 put options.
American Express declared that its board has authorized a stock repurchase plan on Wednesday, June 28th that permits the company to repurchase $4.40 billion in shares. This repurchase authorization permits the payment services company to repurchase up to 5.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Thursday, August 10th. Investors of record on Friday, July 7th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Wednesday, July 5th. This represents a $1.28 annualized dividend and a dividend yield of 1.50%. American Express’s dividend payout ratio is presently 26.18%.
American Express Company Profile
American Express Company, together with its subsidiaries, is a global services company. The Company’s principal products and services are charge and credit card products, and travel-related services, which are offered to consumers and businesses around the world. Its segments include the U.S. Consumer Services (USCS), International Consumer and Network Services (ICNS), Global Commercial Services (GCS) and Global Merchant Services (GMS).
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