AXP
American Express down 2% in premarket trade after Q2 revenue miss offsets EPS beat
Article Summary
BUY- American Express Co. (NYSE: EXR) fell more than 2% in premarket trading after reporting stronger-than-expected earnings and revenue growth, but revenue missed expectations as card-member spending and interest-rate gains were offset by higher expenses.
- American Express Co. reported 10% revenue growth and EPS of $4.53, driven by higher Card Member spending and strong card fee growth, though expenses rose 12% year-over-year due to higher variable customer engagement costs and Platinum refresh initiatives.
- The consolidated effective tax rate rose to 23.6% from 18.7% a year earlier, reflecting discrete tax benefits in the prior year, while provisions for credit losses fell to $1.1 billion, reflecting a reserve release during the quarter compared with a reserve build in prior year.
- Management raised full-year revenue growth guidance to 10% and said it continues to expect earnings per share of $17.30-17.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.4% | 25% | 35.0 ptsBelow Screener (9.4%) - Weak growth |
| EPS Growth Next 5Y ? | 14.2% | 25% | 35.0 ptsBelow Screener (14.2%) - Modest outlook |
| Target Price Upside ? | 17.8% | 20% | 60.0 ptsModerate Upside (17.8%) - Target: $378.50 vs Current: $321.24 |
| Gross Margin % ? | 60.2% | 15% | 80.0 ptsVery Healthy (60.2%) - High-quality margins |
| Drawdown from 52-Wk High ? | -17.1% | 15% | 40.0 ptsMild Pullback (-17.1%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About AXP
- American Express Company, together with its subsidiaries, operates as an integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and internationally.
- It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.
- The company offers credit and charge cards and complementary products and services, including travel, dining, and lifestyle and expense management products and services; and banking and other payment and financing products and services, including deposits and non-card lending.
- It also provides merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, as well as network services.
- The company offers its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone, and direct response advertising.
- American Express Company was founded in 1850 and is headquartered in New York, New York.