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Valued at a market cap of $237.8 billion, American Express Company (AXP) is a financial services company known for its charge cards, credit cards, and traveller’s cheques. The New York-based company offers payments and travel services to consumers, small businesses, and corporations. It is scheduled to announce its fiscal Q3 earnings for 2025 before the market opens on Friday, Oct. 17.
Ahead of this event, analysts expect this credit services giant to report a profit of $3.93 per share, up 12.6% from $3.49 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q2, AXP’s EPS of $4.08 exceeded the forecasted figure by 5.7%.
For fiscal 2025, analysts expect AXP to report a profit of $15.25 per share, up 14.2% from $13.35 per share in fiscal 2024. Furthermore, its EPS is expected to grow 14.2% year-over-year to $17.41 in fiscal 2026.
Shares of AXP have soared 27.4% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 15.6% uptick and the Financial Select Sector SPDR Fund’s (XLF) 19.6% return over the same time frame.
Shares of American Express plunged 2.4% on Jul. 18, despite posting better-than-expected Q2 results. The company’s total revenue, net of interest expense, improved 9.3% year-over-year to a Q2 record of $17.9 billion, topping consensus estimates by 9.3%. Moreover, its adjusted EPS of $4.08 grew 16.9% from the prior-year quarter, exceeding Wall Street estimates by 5.7%. Record card member spending in the quarter, strong demand for its premium products, and robust credit performance drove its strong results.
Wall Street analysts are moderately optimistic about AXP’s stock, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, eight recommend "Strong Buy," two indicate "Moderate Buy," 18 suggest "Hold,” and two advise “Strong Sell.” While the company is trading above its mean price target of $326.04, its Street-high price target of $375 indicates a 9.8% potential upside from the current levels.
