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American Express (AXP) is slated to report Q4 results on Thursday, January 19 after the market close, with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for EPS of 99c on revenue of $7.92B. The consensus range is 94c-$1.03 for EPS, and $7.73B-$8.20B for revenue, according to First Call. Earlier this week, American Express reported that its credit metrics improved slightly in December 2011 compared with the previous month. The credit card issuer noted that its net write-offs had dropped to 2.3% from 2.4%, while the percentage of borrowers who were 30 days or more past due declined to 1.4% from 1.5%. American Express may also benefit from an increase in credit card utilization, as the Federal Reserve reported earlier this month that revolving credit in the U.S. had jumped a seasonally adjusted, annualized, 8.5% in November, to $798.3B.

Analyst Views

Furthermore, Argus last week predicted that American Express would report "solid" Q4 results. Noting that the stock had risen by the second lowest amount in its peer group over the past year, Argus contends that American Express is undervalued. The firm expects American Express to spend less money going forward on investments meant to boost its growth over the long-term, and Argus reiterated a Buy rating on the stock.

Source: Earnings Preview: American Express