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American Express (AXP) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts expect American Express (AXP - Free Report) to post quarterly earnings of $3.03 per share in its upcoming report, which indicates a year-over-year increase of 15.7%. Revenues are expected to be $17.19 billion, up 8.8% from the year-ago quarter.

The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific American Express metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Commercial Services - Card Member Loans - Total loans' will likely reach $30.48 billion. The estimate compares to the year-ago value of $25.8 billion.

The collective assessment of analysts points to an estimated 'U.S. Consumer Services - Card Member loans - Total loans' of $91.00 billion. Compared to the present estimate, the company reported $83.2 billion in the same quarter last year.

Analysts forecast 'International Card Services - Card Member loans - consumer and small business - Total loans' to reach $18.56 billion. Compared to the present estimate, the company reported $17 billion in the same quarter last year.

The average prediction of analysts places 'Average Card Member loans' at $136.84 billion. The estimate compares to the year-ago value of $121.8 billion.

The consensus estimate for 'Total Card Member loans' stands at $140.03 billion. The estimate compares to the year-ago value of $126 billion.

It is projected by analysts that the 'Card billed business (Network volumes)' will reach $458.67 billion. The estimate is in contrast to the year-ago figure of $434.4 billion.

The consensus among analysts is that 'Total Interest Income' will reach $6.19 billion. Compared to the present estimate, the company reported $5.55 billion in the same quarter last year.

Analysts expect 'Total non-interest revenues' to come in at $13.07 billion. The estimate compares to the year-ago value of $12.20 billion.

Based on the collective assessment of analysts, 'Net Interest Income' should arrive at $4.12 billion. Compared to the present estimate, the company reported $3.60 billion in the same quarter last year.

According to the collective judgment of analysts, 'Discount revenue' should come in at $9.11 billion. The estimate compares to the year-ago value of $8.58 billion.

Analysts predict that the 'Net card fees' will reach $2.26 billion. The estimate compares to the year-ago value of $1.91 billion.

Analysts' assessment points toward 'Processed revenue' reaching $417.38 million. Compared to the present estimate, the company reported $414 million in the same quarter last year.

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

American Express shares have witnessed a change of +4.7% in the past month, in contrast to the Zacks S&P 500 composite's -0.4% move. With a Zacks Rank #3 (Hold), AXP is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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