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American Express (NYSE:AXP) is set to report Q2 results after the market close on Wednesday, July 18 with a conference call scheduled to take place at 5:00 pm.

Guidance

Analysts' consensus estimate is $1.09 for EPS and $8.10B for revenue. The consensus range is $1.00-$1.14 for EPS and $7.77B-$8.76B for revenue, according to First Call. American Express is facing both headwinds and opportunities going into its Q2 results announcement. In a note to investors on June 26, research firm Susquehanna identified some of the company's headwinds, including tough comps and foreign exchange risks. The firm lowered its target on the stock to $66 from $68 but maintained a Positive rating. Meanwhile, the company may also be hurt by the settlement of a lawsuit involving Visa (NYSE:V), MasterCard (NYSE:MA) and retailers. Under the deal, retailers will be able to charge consumers surcharges for using their credit cards. Although American Express already permits these surcharges, they may become more common following the lawsuit. As a result, consumers may be less likely to use their American Express cards. On a positive note, American Express said that its net write-off rate dropped to 2% in June, compared with 2.2% in May. Also, a recent ruling by the WTO may open up the Chinese market to American Express

Source: Earnings Preview: American Express