American Express (NYSE:AXP) Issues Earnings Results

Key Points

• American Express reported earnings of $4.14 per share for Q3, exceeding expectations by $0.19, and updated its FY 2025 guidance to a range of $15.200-$15.500 EPS.
• The company's stock declined by 2.1% despite the positive earnings report, indicating potential market volatility or external pressures.
• American Express also announced a quarterly dividend of $0.82 per share, representing a 1.0% dividend yield as part of its ongoing shareholder returns.

American Express Company (NYSE:AXP) released its quarterly earnings results on Friday. The payment services company reported $4.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.98 by $0.16, RTT News reports. American Express had a net margin of 14.78% and a return on equity of 32.87%. American Express's quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.49 EPS. American Express updated its FY 2025 guidance to 15.200-15.500 EPS.

American Express Stock Performance

Shares of NYSE:AXP opened at $323.60 on Friday. The business's 50-day simple moving average is $324.66 and its 200 day simple moving average is $301.57. American Express Company has a one year low of $220.43 and a one year high of $349.19. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.60 and a current ratio of 1.61. The company has a market cap of $225.19 billion, a P/E ratio of 22.71, a PEG ratio of 1.73 and a beta of 1.29.

American Express Dividend Announcement

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

Wall Street Analysts Forecast Growth

AXP has been the topic of a number of analyst reports. Monness Crespi & Hardt lowered shares of American Express from a "buy" rating to a "neutral" rating in a research report on Tuesday, July 15th. Deutsche Bank Aktiengesellschaft raised their price objective on American Express from $371.00 to $375.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Royal Bank Of Canada reiterated an "outperform" rating on shares of American Express in a research report on Monday, July 14th. Keefe, Bruyette & Woods lifted their price target on American Express from $371.00 to $394.00 and gave the company an "outperform" rating in a report on Wednesday, October 1st. Finally, JPMorgan Chase & Co. increased their price objective on shares of American Express from $343.00 to $355.00 and gave the stock a "neutral" rating in a report on Tuesday, October 7th. Nine equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $323.60.

Insider Activity

In other American Express news, insider Glenda G. Mcneal sold 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $309.50, for a total transaction of $15,475,000.00. Following the completion of the sale, the insider owned 10,957 shares in the company, valued at $3,391,191.50. This trade represents a 82.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Stephen J. Squeri sold 112,272 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the chief executive officer directly owned 92,810 shares in the company, valued at approximately $30,614,306.60. The trade was a 54.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 269,996 shares of company stock worth $85,261,270 over the last three months. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of American Express

Several institutional investors have recently added to or reduced their stakes in AXP. Graney & King LLC grew its position in 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 purchasing an additional 33 shares in the last quarter. Mendel Capital Management LLC increased its position in American Express by 5.6% in the 2nd quarter. Mendel Capital Management LLC now owns 1,317 shares of the payment services company's stock worth $420,000 after purchasing an additional 70 shares during the last quarter. Howland Capital Management LLC raised its stake in shares of American Express by 4.2% during the 2nd quarter. Howland Capital Management LLC now owns 2,216 shares of the payment services company's stock worth $707,000 after purchasing an additional 90 shares in the last quarter. Strategic Wealth Investment Group LLC lifted its holdings in shares of American Express by 4.7% during the 2nd quarter. Strategic Wealth Investment Group LLC now owns 3,357 shares of the payment services company's stock valued at $1,071,000 after buying an additional 150 shares during the last quarter. Finally, Sivia Capital Partners LLC grew its stake in shares of American Express by 13.0% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,738 shares of the payment services company's stock valued at $554,000 after buying an additional 200 shares in the last quarter. 84.33% of the stock is owned by institutional investors and hedge funds.

American Express Company Profile

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.