American Express Co. (AXP) is expected to report Q1 earnings after the market close tomorrow with a conference call scheduled for 5 pm ET.
The consensus estimate is 63c for EPS and $6.33B for revenue, according to First Call. Fitch Ratings on April 16 gave a vote of confidence to American Express (AXP) by affirming its long term issuer default rating of A+ for the credit card company. In addition, Fitch revised its ratings outlook on American Express to Stable from Negative. The ratings reflect American Express' strong franchise, spend-centric business model, market position in the payments industry, diverse funding base, ample liquidity, continued capital generation, and stable risk-adjusted capitalization, according to Fitch.
Meanwhile, Citigroup on April 13 raised its target on American Express to $51 from $48. The firm thinks that strong global spending trends in Q1 will allow the company's stock to rise, and it continued to identify American Express as a top pick. On a somewhat negative note, the company reported last month that it wrote off 7.4% of its credit card loans in February, up from 7% in January. The proportion of cardholders at least 30 days behind on their payments was 3.6%, unchanged from January.