Earnings Preview: American Express

Apr.18.12 | About: American Express (AXP)

American Express (NYSE:AXP) is expected to report Q1 earnings on Wednesday, April 18 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of $1.00 on revenue of $7.57B. American Express recently reported that its card delinquencies last month fell to 1.3% from 1.4% in February. The percentage of the company's loans past due also fell to 1.3% from 1.4%.

Analyst Views

Wells Fargo, on March 29, downgraded American Express to Market Perform from Outperform, citing valuation. However, the firm also raised its valuation range on the stock to $60-$64 from $52-$57. The firm added that it continues to believe that the credit card company "has one of the premier consumer franchises within financial services." Research firms Susquehanna and CLSA were more upbeat on American Express' outlook. On March 27, Susquehanna increased its target on the stock to $68 from $57, citing the company's stock buyback program, its solid base business, and accelerating growth. On the same day, CLSA increased its price target on the stock to $70 from $60, citing the company's 11% dividend increase and 150M share buyback plan.