Analysts predict American Express will report strong earnings and revenue growth this quarter, reflecting positive trends in key metrics.
In the last month, analysts have slightly upped their earnings estimates, showing confidence in AXP’s performance. This kind of revision often hints at how investors might react once the numbers are out.
It’s not just about the headline figures, though. Investors should also keep an eye on specific metrics that analysts are watching closely. For instance, the total loans for Commercial Services are expected to reach $30.48 billion, up from $25.8 billion last year.
When it comes to U.S. Consumer Services, analysts are forecasting total loans of $91 billion, a rise from $83.2 billion in the same quarter last year. Internationally, they expect loans to hit $18.56 billion, up from $17 billion.
The average card member loans are projected at $136.84 billion, compared to $121.8 billion last year. Total card member loans are also on the rise, with estimates at $140.03 billion, up from $126 billion.
Analysts are optimistic about the card billed business too, expecting it to reach $458.67 billion, a solid increase from $434.4 billion last year.
Looking at interest income, the consensus is that it will come in at $6.19 billion, up from $5.55 billion last year. Non-interest revenues are also expected to rise to $13.07 billion, compared to $12.20 billion last year.
Net interest income is projected at $4.12 billion, up from $3.60 billion, while discount revenue is expected to reach $9.11 billion, compared to $8.58 billion last year.
Lastly, net card fees are forecasted to hit $2.26 billion, up from $1.91 billion last year. Processed revenue is also expected to see a slight increase, reaching $417.38 million.
Overall, American Express shares have seen a nice uptick of 4.7% in the past month, while the broader market has dipped slightly. With a Zacks Rank of #3, AXP is likely to follow the market closely in the near term.