American Express Stock Is Up 33% YTD, What To Expect From Q2 Earnings?

Core Insights - American Express' revenues grew 14% year-over-year to $60.5 billion in FY 2023 [1] - The company is expected to report mixed results for fiscal Q2 2024, with revenues exceeding consensus estimates but earnings slightly below expectations [12] - The stock price estimate for American Express is $228 per share, which is 9% lower than the current market price of approximately $250 [4][10] Revenue and Earnings Performance - American Express' fiscal Q2 2024 revenues are projected to be around $16.71 billion, which is 1% above the consensus estimate of $16.59 billion [9] - The company reported total revenues of $15.8 billion in the last quarter, marking an 11% year-over-year increase, driven by growth in both net interest income and noninterest revenues [12] - Noninterest income, which constitutes around 80% of total revenues, rose by 10% year-over-year in 2023 and 6% year-over-year in Q1 2024, with expectations for continued growth in Q2 [13] Stock Performance and Market Comparison - American Express stock has gained 33% year-to-date, outperforming the S&P 500 index, which rose by 19% [12] - The stock has seen a significant increase of 110% from $120 in early January 2021 to around $250 now, compared to a 50% increase for the S&P 500 over the same period [8] - The adjusted earnings per share for Q2 2024 is expected to be $3.23, slightly below the consensus estimate of $3.25 [14]