American Express (NYSE:AXP) Issues FY 2025 Earnings Guidance

Key Points

• American Express has updated its FY 2025 earnings guidance, providing an EPS range of 15.200-15.500 and revenue guidance of $71.9 billion-$72.5 billion, exceeding consensus estimates in both categories.
• Several brokerages have raised their price targets for American Express, with a consensus target price of $323.60 and a predominance of "Buy" and "Hold" ratings among analysts.
• The company's stock has recently seen a 2.1% decline, currently trading at $323.60, with a market capitalization of $225.19 billion and a reported 9.3% year-over-year revenue growth in its last quarter.

American Express Company (NYSE:AXP) updated its FY 2025 earnings guidance on Friday. The company provided EPS guidance of 15.200-15.500 for the period, compared to the consensus EPS estimate of 15.310. The company issued revenue guidance of $71.9 billion-$72.5 billion, compared to the consensus revenue estimate of $71.5 billion.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AXP. Deutsche Bank Aktiengesellschaft increased their price target on shares of American Express from $371.00 to $375.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Evercore ISI raised their target price on shares of American Express from $330.00 to $365.00 and gave the company an "in-line" rating in a research note on Tuesday, September 30th. JPMorgan Chase & Co. raised their target price on shares of American Express from $343.00 to $355.00 and gave the company a "neutral" rating in a research note on Tuesday, October 7th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of American Express in a research note on Monday, July 14th. Finally, Morgan Stanley raised their target price on shares of American Express from $311.00 to $362.00 and gave the company an "equal weight" rating in a research note on Monday, September 29th. Nine analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $323.60.

American Express Stock Down 2.1%

Shares of American Express stock opened at $323.60 on Friday. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.60 and a current ratio of 1.61. American Express Company has a 52-week low of $220.43 and a 52-week high of $349.19. The stock has a market capitalization of $225.19 billion, a price-to-earnings ratio of 22.71, a P/E/G ratio of 1.73 and a beta of 1.29. The company's 50 day moving average price is $324.66 and its 200-day moving average price is $301.57.

American Express (NYSE:AXP - Get Free Report) last issued its earnings results on Friday, July 18th. The payment services company reported $4.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.86 by $0.22. American Express had a net margin of 14.78% and a return on equity of 32.87%. The firm had revenue of $17.86 billion for the quarter, compared to analysts' expectations of $17.70 billion. During the same quarter last year, the business earned $3.49 earnings per share. The business's revenue was up 9.3% on a year-over-year basis. Equities research analysts forecast that American Express Company will post 15.33 EPS for the current year.

American Express Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 10th. Stockholders of record on Friday, October 10th will be issued a $0.82 dividend. The ex-dividend date is Friday, October 10th. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. American Express's dividend payout ratio (DPR) is currently 23.02%.

Insiders Place Their Bets

In related news, CEO Stephen J. Squeri sold 112,272 shares of American Express stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $329.86, for a total value of $37,034,041.92. Following the sale, the chief executive officer owned 92,810 shares in the company, valued at $30,614,306.60. The trade was a 54.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Laureen Seeger sold 16,998 shares of American Express stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $294.83, for a total transaction of $5,011,520.34. Following the completion of the sale, the insider owned 9,001 shares in the company, valued at approximately $2,653,764.83. This trade represents a 65.38% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 269,996 shares of company stock valued at $85,261,270 over the last quarter. 0.20% of the stock is owned by company insiders.

Institutional Trading of American Express

Hedge funds and other institutional investors have recently modified their holdings of the business. Graney & King LLC boosted its stake in shares of American Express by 12.7% during the 2nd quarter. Graney & King LLC now owns 292 shares of the payment services company's stock worth $93,000 after acquiring an additional 33 shares in the last quarter. Mendel Capital Management LLC boosted its position in shares of American Express by 5.6% in the second quarter. Mendel Capital Management LLC now owns 1,317 shares of the payment services company's stock worth $420,000 after buying an additional 70 shares during the period. Howland Capital Management LLC boosted its position in shares of American Express by 4.2% in the second quarter. Howland Capital Management LLC now owns 2,216 shares of the payment services company's stock worth $707,000 after buying an additional 90 shares during the period. Strategic Wealth Investment Group LLC boosted its position in shares of American Express by 4.7% in the second quarter. Strategic Wealth Investment Group LLC now owns 3,357 shares of the payment services company's stock worth $1,071,000 after buying an additional 150 shares during the period. Finally, Sivia Capital Partners LLC boosted its position in shares of American Express by 13.0% in the second quarter. Sivia Capital Partners LLC now owns 1,738 shares of the payment services company's stock worth $554,000 after buying an additional 200 shares during the period. 84.33% of the stock is owned by hedge funds and other institutional investors.

About American Express

American Express Company, together with its subsidiaries, operates as 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.

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