Back to top

Image: Bigstock

Ahead of American Express (AXP) Q3 Earnings: Get Ready With Wall Street Estimates for Key Metrics

Read MoreHide Full Article

Wall Street analysts forecast that American Express (AXP - Free Report) will report quarterly earnings of $3.27 per share in its upcoming release, pointing to a year-over-year decline of 0.9%. It is anticipated that revenues will amount to $16.65 billion, exhibiting an increase of 8.2% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

With that in mind, let's delve into the average projections of some American Express metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Average Card Member loans' to come in at $133.15 billion. The estimate compares to the year-ago value of $116.6 billion.

According to the collective judgment of analysts, 'U.S. Consumer Services - Card Member loans - Total loans' should come in at $87.59 billion. The estimate is in contrast to the year-ago figure of $77.7 billion.

Analysts' assessment points toward 'Total Card Member loans' reaching $135.07 billion. The estimate is in contrast to the year-ago figure of $118 billion.

The consensus estimate for 'Commercial Services - Card Member Loans - Total loans' stands at $30.39 billion. The estimate compares to the year-ago value of $25.2 billion.

The average prediction of analysts places 'Card billed business (Network volumes)' at $437.80 billion. The estimate is in contrast to the year-ago figure of $420.2 billion.

It is projected by analysts that the 'International Card Services - Card Member loans - consumer and small business - Total loans' will reach $17.10 billion. The estimate compares to the year-ago value of $15.1 billion.

The collective assessment of analysts points to an estimated 'Net Interest Income' of $3.93 billion. Compared to the present estimate, the company reported $3.44 billion in the same quarter last year.

Analysts predict that the 'Total non-interest revenues' will reach $12.73 billion. Compared to the present estimate, the company reported $11.94 billion in the same quarter last year.

The combined assessment of analysts suggests that 'Total Interest Income' will likely reach $5.94 billion. The estimate is in contrast to the year-ago figure of $5.24 billion.

The consensus among analysts is that 'Service fees and other revenue' will reach $1.35 billion. The estimate is in contrast to the year-ago figure of $1.26 billion.

Based on the collective assessment of analysts, 'Processed revenue' should arrive at $423.87 million. The estimate is in contrast to the year-ago figure of $424 million.

Analysts forecast 'Net card fees' to reach $2.15 billion. Compared to the present estimate, the company reported $1.85 billion in the same quarter last year.

View all Key Company Metrics for American Express here>>>

American Express shares have witnessed a change of +5.9% in the past month, in contrast to the Zacks S&P 500 composite's +4.3% move. With a Zacks Rank #2 (Buy), AXP is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Express Company (AXP) - free report >>

Published in