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American Express: Steady Execution, But Not Cheap Enough To Chase (NYSE:AXP)
Seeking Alpha· 2025-10-13 16:56
American Express Company (NYSE: AXP ) is a financial institution, mainly known for its credit and charge card services, available to both individuals and businesses. AXP is an integrated payment solution provider, with main revenue sources arising from transactionDear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional background covers ...
How To Trade American Express Stock Ahead Of Earnings?
Forbes· 2025-10-13 12:10
Photo illustration by Cheng Xin/Getty ImagesGetty ImagesAmerican Express (NYSE:AXP) is scheduled to announce its earnings on Friday, October 17, 2025. Revenues are expected to reach $18 billion, reflecting an 8.5% increase year-over-year according to consensus estimates, while earnings are anticipated to be approximately $3.28 per share, which is a 6.5% rise compared to the previous year. This growth is likely to be fueled by increased spending by cardholders and a rise in net card fees, primarily driven by ...
1 Reason Every Investor Should Know About American Express (AXP)
Yahoo Finance· 2025-09-15 10:30
Group 1 - American Express is celebrating its 150th anniversary and is leveraging technology to resonate with a younger consumer base, which is expected to drive growth for decades [1][6] - The company targets affluent consumers who are more resilient under pressure, generating loyalty through annual fees and attractive rewards [3][8] - In the second quarter, U.S. consumer spending increased by 7% year over year, with Gen Z spending rising by 39% and Millennials by 10% [4] Group 2 - CEO Stephen Squeri highlighted the growth of the premium customer base and the company's unique premium model developed over the past 40 years, which includes exclusive offerings and strong luxury partnerships [5] - The company's ability to adapt to current trends and shift its business model successfully instills confidence in its future growth [6]
Jim Cramer Says People Love American Express Company (AXP)
Yahoo Finance· 2025-09-10 16:08
We recently published 15 Stocks Jim Cramer Discussed As He Said CEOs Were Afraid Of Hiring. American Express Company (NYSE:AXP) is one of the stocks Jim Cramer recently discussed. Throughout his morning show appearances in 2025, Jim Cramer has praised American Express Company (NYSE:AXP). One key aspect that has caught his attention is the growing popularity of the firm’s payment cards with younger customers. American Express Company (NYSE:AXP)’s shares have gained 9% year-to-date and are up by 40.6% since ...
Jim Cramer Suggests Buying American Express
Yahoo Finance· 2025-09-10 04:20
American Express Company (NYSE:AXP) is one of the stocks on Jim Cramer’s radar. Noting that the company is not growing at the right pace and lacks strong leadership, a caller expressed concern about the stock. In response, Cramer said: “Oh my god, I think Steve, I’m going to have to, I don’t like to come out against our viewers, but I’m going to have to be a hundred percent against you on this. I think Steve Squeri is a remarkable executive, and I am harsh. I am hard-pressed to criticize a company that hi ...
CPI Card Group Inc. (PMTS) Earnings Expected to Grow: What to Know Ahead of Q2 Release
ZACKS· 2025-07-28 15:06
Core Viewpoint - The market anticipates CPI Card Group Inc. (PMTS) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.56 per share, reflecting a year-over-year increase of +9.8%, while revenues are expected to reach $132.25 million, up 11.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 12% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][11]. Earnings Surprise Prediction - The Most Accurate Estimate for CPI Card Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.31%, which complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, CPI Card Group was expected to post earnings of $0.56 per share but only achieved $0.40, resulting in a surprise of -28.57%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Overall Assessment - CPI Card Group does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [16].
American Express: Retaining The Premium Segment
Seeking Alpha· 2025-07-28 12:13
Group 1 - American Express has surpassed a market capitalization of $200 billion and continues to secure additional contracts, indicating strong growth potential [2] - The company has been recommended for investment during market downturns, suggesting confidence in its resilience and performance [2] - The Value Portfolio employs a fact-based research strategy, analyzing extensive financial documents and market reports to identify investment opportunities [2] Group 2 - The Retirement Forum aims to provide actionable ideas and a high-yield safe retirement portfolio, focusing on maximizing capital and income for investors [1]
American Express beats Q2 estimates on strong cardholder spending
Proactiveinvestors NA· 2025-07-18 13:39
Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology enthusiastically, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]
AmEx Flexes Premium Muscle in Q1: But Can it Outrun Tariff Headwinds?
ZACKS· 2025-04-23 16:55
Core Viewpoint - American Express (AmEx) maintains its revenue and profit guidance for 2025, supported by a resilient affluent customer base that continues to spend despite macroeconomic challenges [1][3]. Financial Performance - Q1 2025 EPS reached $3.64, exceeding estimates by 5.5% and reflecting a 9% year-over-year increase [3]. - Network volumes for Q1 2025 totaled $439.6 billion, marking a 5% increase year-over-year [3]. - U.S. Consumer Services reported a pre-tax income of $1.7 billion, up 7% year-over-year, while Commercial Services saw a decline in pre-tax income to $836 million, down 5% year-over-year [3]. - Revenue guidance for 2025 is reaffirmed at an 8-10% growth from $65.9 billion in 2024, with EPS guidance set at $15-$15.50, up from $13.35 in 2024 [3]. Market Estimates - The Zacks Consensus Estimate predicts a 13.9% year-over-year increase in AmEx's 2025 earnings, with 2026 earnings expected to grow by 14.5% [5]. - Revenue estimates for 2025 and 2026 indicate year-over-year growth of 8.5% and 8.4%, respectively [5]. - AmEx has a history of surpassing earnings expectations, with an average surprise of 5.2% over the past four quarters [5]. Stock Performance - Over the past month, AXP shares have declined by 9.1%, aligning with the broader industry downturn, yet outperforming both the industry average and the S&P 500 Index [6]. - Competitors Visa and Mastercard experienced smaller declines due to lower exposure to credit risk compared to AmEx [6]. Valuation Insights - AmEx is trading at a forward P/E ratio of 15.84X, above the industry average of 13.98X, indicating strong investor confidence [8]. - Visa and Mastercard trade at higher multiples of 27.39X and 31.51X, respectively, reflecting their different business models and risk profiles [8]. Business Model and Strategy - AmEx's dual role as a credit card issuer and network operator allows it to capture a larger share of transaction economics, contributing to a more profitable business model [9]. - The company is experiencing strong credit performance and operational efficiency, with rising cardmember spending and expanding lending operations [9]. - A 9% year-over-year decline in Q1 provision for credit losses to $1.2 billion suggests improving credit quality and reduced expectations for customer defaults [10]. Spending Trends and Future Investments - Travel and entertainment spending remains robust, particularly in lodging, dining, and entertainment, areas where AmEx is focusing its efforts [14]. - The acquisition of Center enhances AmEx's presence in high-end dining and lifestyle experiences, reinforcing its premium value proposition [14]. - AmEx is targeting Gen Z and Millennials through marketing efforts to build brand loyalty for future growth [15]. Financial Position - At the end of Q1 2025, AmEx had $52.5 billion in cash and cash equivalents, up from $40.6 billion at the end of 2024, with short-term debt at $1.6 billion [16]. - The company returned value to shareholders by repurchasing 2 million shares for $700 million and paying $600 million in dividends during the quarter [16].
American Express(AXP) - 2025 Q1 - Earnings Call Presentation
2025-04-17 15:24
Financial Performance - Total revenues net of interest expense reached $16.967 billion, a 7% increase compared to Q1'24, or an 8% increase on an FX-adjusted basis[5] - Net income was $2.584 billion, up 6% year-over-year[5] - Diluted EPS increased by 9% to $3.64[5] Billed Business - Total billed business grew by 6% on an FX-adjusted basis[7] - U.S Consumer Services billed business increased by 7% year-over-year, with Millennials and Gen-Z contributing 14% growth[10] - International Card Services billed business saw a 13% increase, driven by a 12% rise in International Consumer and a 13% increase in International SME & Large Corp[14] Revenue Streams - Discount revenue increased by 4% to $8.743 billion[25] - Net card fees grew significantly by 18% to $2.333 billion[25] - Net interest income increased by 11% to $4.169 billion[25] Expenses and Credit Metrics - Total expenses increased by 10% to $12.487 billion, with variable customer engagement expenses accounting for 43% of revenue[40] - The net write-off rate for Card Member Loans was 2.4% in Q1'25[55] - Total provision decreased by 9% versus Q1'24, primarily driven by a net reserve release in the current period versus a net reserve build in the prior period, partially offset by higher net write-offs[67] Loans and Receivables - Worldwide total loans and card member receivables reached $207 billion, a 7% increase year-over-year on an FX-adjusted basis[16] Guidance - The company projects revenue growth of 8% - 10% for 2025[46] - EPS guidance for 2025 is set at $15.00 - $15.50, representing an adjusted EPS growth of 12% - 16%[46]