American Express (AXP) Expected to Post Quarterly Sales of $10.59 Billion

Brokerages predict that American Express (NYSE:AXP) will report sales of $10.59 billion for the current fiscal quarter, according to Zacks. Seven analysts have provided estimates for American Express’ earnings. The lowest sales estimate is $10.45 billion and the highest is $10.76 billion. American Express posted sales of $8.84 billion in the same quarter last year, which suggests a positive year over year growth rate of 19.8%. The company is expected to issue its next quarterly earnings results on Thursday, January 17th.

According to Zacks, analysts expect that American Express will report full year sales of $40.45 billion for the current fiscal year, with estimates ranging from $40.32 billion to $40.62 billion. For the next financial year, analysts anticipate that the business will post sales of $43.64 billion, with estimates ranging from $43.33 billion to $43.77 billion. Zacks’ sales averages are a mean average based on a survey of research analysts that follow American Express.

American Express (NYSE:AXP) last issued its quarterly earnings results on Thursday, October 18th. The payment services company reported $1.88 EPS for the quarter, beating the Zacks’ consensus estimate of $1.77 by $0.11. The company had revenue of $10.14 billion during the quarter, compared to the consensus estimate of $10.06 billion. American Express had a return on equity of 31.26% and a net margin of 9.51%. American Express’s revenue was up 9.2% on a year-over-year basis. During the same period last year, the business posted $1.50 earnings per share.

A number of brokerages recently commented on AXP. Zacks Investment Research downgraded American Express from a “hold” rating to a “sell” rating in a research report on Thursday, September 20th. Stephens raised American Express from an “equal weight” rating to an “overweight” rating and set a $110.50 price target for the company in a research report on Monday, September 17th. Bank of America set a $125.00 price target on American Express and gave the company a “buy” rating in a research report on Friday, October 19th. Wells Fargo & Co increased their price target on American Express from $115.00 to $122.00 and gave the company an “outperform” rating in a research report on Monday, October 1st. Finally, Morgan Stanley increased their price target on American Express from $109.00 to $115.00 and gave the company an “equal weight” rating in a research report on Friday, October 19th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $112.70.

In other American Express news, insider Marc D. Gordon sold 25,948 shares of the firm’s stock in a transaction on Wednesday, September 12th. The stock was sold at an average price of $107.83, for a total value of $2,797,972.84. Following the completion of the sale, the insider now directly owns 33,111 shares of the company’s stock, valued at $3,570,359.13. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Stephen J. Squeri sold 12,500 shares of the firm’s stock in a transaction on Thursday, November 1st. The stock was sold at an average price of $103.84, for a total value of $1,298,000.00. Following the completion of the sale, the chairman now directly owns 209,957 shares of the company’s stock, valued at $21,801,934.88. The disclosure for this sale can be found here. Company insiders own 0.20% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. Destination Wealth Management boosted its holdings in shares of American Express by 165.4% in the second quarter. Destination Wealth Management now owns 1,059 shares of the payment services company’s stock worth $104,000 after acquiring an additional 660 shares during the period. Tuttle Tactical Management bought a new position in shares of American Express in the second quarter worth $105,000. Ancora Advisors LLC bought a new position in shares of American Express in the third quarter worth $106,000. Lenox Wealth Advisors LLC boosted its holdings in shares of American Express by 1,173.8% in the third quarter. Lenox Wealth Advisors LLC now owns 1,070 shares of the payment services company’s stock worth $114,000 after acquiring an additional 986 shares during the period. Finally, Sageworth Trust Co boosted its holdings in shares of American Express by 455.6% in the third quarter. Sageworth Trust Co now owns 1,250 shares of the payment services company’s stock worth $133,000 after acquiring an additional 1,025 shares during the period. 83.42% of the stock is owned by institutional investors and hedge funds.

Shares of AXP traded up $0.41 on Friday, reaching $106.50. 2,790,977 shares of the company’s stock traded hands, compared to its average volume of 3,714,731. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 2.58. The company has a market capitalization of $90.63 billion, a price-to-earnings ratio of 18.14, a PEG ratio of 1.44 and a beta of 1.06. American Express has a 52-week low of $87.54 and a 52-week high of $111.77.

The company also recently announced a quarterly dividend, which was paid on Friday, November 9th. Shareholders of record on Friday, October 5th were given a $0.39 dividend. This is an increase from American Express’s previous quarterly dividend of $0.35. This represents a $1.56 dividend on an annualized basis and a yield of 1.46%. The ex-dividend date of this dividend was Thursday, October 4th. American Express’s dividend payout ratio (DPR) is currently 26.58%.

About American Express

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.

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