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American Express (AXP) Reports Earnings Tomorrow: What To Expect

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Global payments company American Express (NYSE: AXP) will be reporting results this Thursday before market open. Here’s what to expect.

American Express missed analysts’ revenue expectations last quarter, reporting revenues of $17.57 billion, up 10.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a miss of analysts’ EPS estimates.

Is American Express a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting American Express’s revenue to grow 17.6% year on year, improving from the 8.8% increase it recorded in the same quarter last year.

American Express Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days.

Looking at American Express’s peers in the consumer finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Synchrony Financial posted flat year-on-year revenue, missing analysts’ expectations by 2.4%, and Capital One reported revenues up 52.3%, falling short of estimates by 1.1%.

Read our full analysis of Synchrony Financial’s results here and Capital One’s results here.

There has been positive sentiment among investors in the consumer finance segment, with share prices up 11.8% on average over the last month. American Express is up 9.7% during the same time and is heading into earnings with an average analyst price target of $356.15 (compared to the current share price of $331.14).

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