Earnings and Growth Analysis : American Express (NYSE:AXP)


Earnings results for American Express (NYSE:AXP)

American Express Company is expected* to report earnings on 10/23/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 0 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.3900000000000001. The reported EPS for the same quarter last year was $2.08.

American Express last posted its earnings results on July 24th, 2020. The payment services company reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.16. The business earned $7.68 billion during the quarter, compared to the consensus estimate of $8.25 billion. Its quarterly revenue was down 29.2% on a year-over-year basis. American Express has generated $8.20 earnings per share over the last year and currently has a price-to-earnings ratio of 21.8. American Express has confirmed that its next quarterly earnings report will be published on Friday, October 23rd, 2020.

Analyst Opinion on American Express (NYSE:AXP)

25 Wall Street analysts have issued ratings and price targets for American Express in the last 12 months. Their average twelve-month price target is $104.78, predicting that the stock has a possible downside of 0.01%. The high price target for AXP is $130.00 and the low price target for AXP is $85.00. There are currently 6 sell ratings, 11 hold ratings and 8 buy ratings for the stock, resulting in a consensus rating of “Hold.”

American Express has received a consensus rating of Hold. The company’s average rating score is 2.08, and is based on 8 buy ratings, 11 hold ratings, and 6 sell ratings. According to analysts’ consensus price target of $104.78, American Express has a forecasted downside of 0.0% from its current price of $104.79. American Express has been the subject of 10 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: American Express (NYSE:AXP)

American Express pays a meaningful dividend of 1.70%, higher than the bottom 25% of all stocks that pay dividends. American Express has been increasing its dividend for 8 years. The dividend payout ratio of American Express is 20.98%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, American Express will have a dividend payout ratio of 25.00% next year. This indicates that American Express will be able to sustain or increase its dividend.

Insiders buying/selling: American Express (NYSE:AXP)

In the past three months, American Express insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $276,720.00 in company stock. Only 0.20% of the stock of American Express is held by insiders. 84.14% of the stock of American Express is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of American Express (NYSE:AXP

Earnings for American Express are expected to grow by 33.08% in the coming year, from $5.17 to $6.88 per share. The P/E ratio of American Express is 21.79, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.48. The P/E ratio of American Express is 21.79, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 18.24. American Express has a PEG Ratio of 2.22. PEG Ratios above 1 indicate that a company could be overvalued. American Express has a P/B Ratio of 3.67. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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