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American Express (AXP) Stock Sinks After Q2 Revenue Miss
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American Express (AXP - Free Report) just released its second quarter financial results, posting earnings of $1.84 per share and revenues of $10 billion.
American Express is currently a Zacks Rank #3 (Hold), which is subject to change based on today’s results. Shares of AXP are up roughly 18% over the last year and 4% in the last four weeks. American Express stock also climbed 1.80% to hit $102.97 per share on Wednesday prior to the release of its Q2 earnings results.
AXP stock is currently down roughly 3.86% to $99 per share in after-hours trading shortly after its earnings report was released.
AXP:
Beat earnings estimates. The company posted earnings of $1.84 per share, just beating the Zacks Consensus Estimate of $1.83 per share. Investors should note that this consensus projection has trended upward over the duration of the quarter.
Missed revenue estimates. The company saw revenue figures of $10 billion, missing our consensus estimate of $10.05 billion.
American Express’ Q2 revenues jumped roughly 9% from $9.2 billion in the year-ago period. The company noted that Card Member spending climbed 10%. American Express also acquired 2.9 million new cards.
AXP’s second-quarter earnings climbed 25% from $1.47 per share in the prior-year quarter, while the company’s first quarter net income jumped 21% to $1.6 billion.
Looking ahead, American Express expects its full-year revenues to be up at least 9%. Meanwhile, the company reaffirmed its full-year EPS guidance at the high end of its $6.90–$7.30 range, which falls relatively in line with our $7.23 full-year estimate.
“Our disciplined control of operating expenses, combined with revenue growth, gave us the flexibility to make substantial investments in our global brand campaign, additional customer benefits, and digital capabilities that will help to grow our business over the long term,” CEO Stephen Squeri said in a statement. “After completing this year’s Federal Reserve stress test, we received a green light to increase the quarterly dividend and are resuming our share buybacks this quarter.”
Here’s a graph that looks at AXP’s Price, Consensus and EPS Surprise history:
American Express Company Price, Consensus and EPS Surprise
Check back later for our full analysis on AXP’s earnings report!
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American Express (AXP) Stock Sinks After Q2 Revenue Miss
American Express (AXP - Free Report) just released its second quarter financial results, posting earnings of $1.84 per share and revenues of $10 billion.
American Express is currently a Zacks Rank #3 (Hold), which is subject to change based on today’s results. Shares of AXP are up roughly 18% over the last year and 4% in the last four weeks. American Express stock also climbed 1.80% to hit $102.97 per share on Wednesday prior to the release of its Q2 earnings results.
AXP stock is currently down roughly 3.86% to $99 per share in after-hours trading shortly after its earnings report was released.
AXP:
Beat earnings estimates. The company posted earnings of $1.84 per share, just beating the Zacks Consensus Estimate of $1.83 per share. Investors should note that this consensus projection has trended upward over the duration of the quarter.
Missed revenue estimates. The company saw revenue figures of $10 billion, missing our consensus estimate of $10.05 billion.
American Express’ Q2 revenues jumped roughly 9% from $9.2 billion in the year-ago period. The company noted that Card Member spending climbed 10%. American Express also acquired 2.9 million new cards.
AXP’s second-quarter earnings climbed 25% from $1.47 per share in the prior-year quarter, while the company’s first quarter net income jumped 21% to $1.6 billion.
Looking ahead, American Express expects its full-year revenues to be up at least 9%. Meanwhile, the company reaffirmed its full-year EPS guidance at the high end of its $6.90–$7.30 range, which falls relatively in line with our $7.23 full-year estimate.
“Our disciplined control of operating expenses, combined with revenue growth, gave us the flexibility to make substantial investments in our global brand campaign, additional customer benefits, and digital capabilities that will help to grow our business over the long term,” CEO Stephen Squeri said in a statement. “After completing this year’s Federal Reserve stress test, we received a green light to increase the quarterly dividend and are resuming our share buybacks this quarter.”
Here’s a graph that looks at AXP’s Price, Consensus and EPS Surprise history:
American Express Company Price, Consensus and EPS Surprise
American Express Company Price, Consensus and EPS Surprise | American Express Company Quote
Check back later for our full analysis on AXP’s earnings report!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>