American Express Company (AXP) Expected to Post Earnings of $1.47 Per Share
Brokerages expect American Express Company (NYSE:AXP) to post $1.47 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Six analysts have provided estimates for American Express’ earnings. The lowest EPS estimate is $1.46 and the highest is $1.52. American Express reported earnings of $1.24 per share in the same quarter last year, which would suggest a positive year over year growth rate of 18.5%. The business is scheduled to announce its next earnings results on Wednesday, October 18th.
On average, analysts expect that American Express will report full-year earnings of $5.73 per share for the current fiscal year, with EPS estimates ranging from $5.60 to $5.85. For the next fiscal year, analysts expect that the company will report earnings of $6.38 per share, with EPS estimates ranging from $6.10 to $6.72. Zacks’ earnings per share averages are an average based on a survey of research analysts that that provide coverage for American Express.
American Express (NYSE:AXP) last posted its quarterly earnings results on Wednesday, July 19th. The payment services company reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.03. The firm had revenue of $8.31 billion during the quarter, compared to analysts’ expectations of $8.20 billion. American Express had a net margin of 14.11% and a return on equity of 21.90%. The firm’s revenue for the quarter was up .9% on a year-over-year basis. During the same period in the prior year, the company posted $2.10 earnings per share.
AXP has been the subject of a number of analyst reports. Keefe, Bruyette & Woods reissued a “buy” rating and set a $91.00 target price on shares of American Express in a research note on Monday, April 10th. Goldman Sachs Group, Inc. (The) reaffirmed a “neutral” rating and issued a $87.00 price target on shares of American Express in a research note on Thursday, April 20th. Jefferies Group LLC reaffirmed a “hold” rating and issued a $75.00 price target on shares of American Express in a research note on Saturday, April 22nd. Piper Jaffray Companies reaffirmed a “neutral” rating and issued a $83.00 price target (up from $82.00) on shares of American Express in a research note on Saturday, April 22nd. Finally, DA Davidson reaffirmed a “neutral” rating and issued a $85.00 price target (up from $84.00) on shares of American Express in a research note on Saturday, April 22nd. Five research analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $84.77.
In other American Express news, CEO Kenneth I. Chenault sold 789,503 shares of the company’s stock in a transaction that occurred on Monday, July 24th. The shares were sold at an average price of $84.62, for a total value of $66,807,743.86. Following the transaction, the chief executive officer now owns 889,836 shares in the company, valued at approximately $75,297,922.32. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Vice Chairman Stephen J. Squeri sold 94,792 shares of the company’s stock in a transaction that occurred on Tuesday, July 25th. The shares were sold at an average price of $85.41, for a total transaction of $8,096,184.72. Following the completion of the transaction, the insider now owns 261,665 shares in the company, valued at approximately $22,348,807.65. The disclosure for this sale can be found here. In the last quarter, insiders sold 948,287 shares of company stock worth $80,321,961. Company insiders own 0.67% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the company. SeaBridge Investment Advisors LLC acquired a new stake in American Express during the first quarter valued at approximately $100,000. MCF Advisors LLC increased its stake in American Express by 0.5% in the first quarter. MCF Advisors LLC now owns 1,282 shares of the payment services company’s stock valued at $101,000 after buying an additional 6 shares in the last quarter. Farmers & Merchants Trust Co of Chambersburg PA increased its stake in American Express by 30.4% in the second quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 1,288 shares of the payment services company’s stock valued at $109,000 after buying an additional 300 shares in the last quarter. SpiderRock Advisors LLC acquired a new stake in American Express during the first quarter valued at approximately $112,000. Finally, SRS Capital Advisors Inc. increased its stake in American Express by 10.3% in the first quarter. SRS Capital Advisors Inc. now owns 1,476 shares of the payment services company’s stock valued at $116,000 after buying an additional 138 shares in the last quarter. 83.81% of the stock is owned by institutional investors.
American Express (NYSE AXP) traded up 0.80% on Tuesday, reaching $86.54. 953,120 shares of the company traded hands. American Express has a 12 month low of $59.50 and a 12 month high of $86.67. The company has a 50-day moving average price of $83.91 and a 200-day moving average price of $79.79. The company has a market capitalization of $76.50 billion, a P/E ratio of 17.75 and a beta of 1.18.
American Express declared that its board has authorized a stock buyback plan on Wednesday, June 28th that authorizes the company to repurchase $4.40 billion in outstanding shares. This repurchase authorization authorizes the payment services company to buy up to 5.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its shares are undervalued.
About American Express
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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