American Express Company (NYSE:AXP) looks to justify new price targets on the stock from analysts when the company reports third-quarter financial results before market open Friday.
Here are the earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts expect American Express to report third-quarter revenue of $18.05 billion, up from $16.64 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters overall.
Analysts expect the company to report third-quarter earnings per share of $4.00, up from $3.49 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in two straight quarters and in seven of the last 10 quarters overall.
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What Analysts Are Saying: In September, Truist Securities analyst Brian Foran reiterated a Buy rating and $375 price target.
The analyst said the company’s refreshed Platinum card is getting mixed reviews, but could provide upside based on a survey of users. A higher annual fee was one of the key items in the Truist survey and the majority of respondents said they planned to renew.
Foran said risks for American Express include higher marketing and technology costs, which could outpace revenue growth. The analyst also cautioned of credit deterioration given a potential weaker economy.
Here are other analyst ratings on American Express and their price targets:
- UBS: Maintained Neutral rating, raised price target from $330 to $340
- JPMorgan: Maintained Neutral rating, raised price target from $343 to $355
- Barclays: Maintained Equal-Weight rating, raised price target from $297 to $336
- Keefe, Bruyette & Woods: Maintained Outperform rating, raised price target from $371 to $394
- Evercore ISI Group: Maintained In-Line rating, raised price target from $330 to $365
Key Items to Watch: The company’s recent upgrades, which include higher perks and fees for consumers, will likely be a key topic of discussion.
Analysts and investors will be looking for commentary on demand and potential churn due to the higher rates.
The company’s refresh is seen as a potential play to Millennials and Gen Z users, offering new perks aimed at these age demographics that could offset the higher fee prices. Younger consumers make up around 35% of all U.S. consumer spending for the company, a rate that has increased from 19% in 2019.
American Express reported strong Card Member spending and higher net interest income in the second quarter. Quarterly revenue, net of interest expense, was up 9% year-over-year in the second quarter.
Card Member spending was up 7% year-over-year to $416.3 billion in the second quarter. Investors and analysts will be closely examining this key metric to gauge the company’s growth and also as a potential indicator of the overall U.S. economy.
The company’s International Card Services segment was up 14.5% year-over-year in the second quarter. In comparison, Global Merchant and Network Services revenue was up 3.2% year-over-year in the second quarter.
Another item of interest to investors and analysts will be the company’s expenses, which were up 14% year-over-year in the second quarter. Investors and analysts will likely be looking for cost increases to be lower than revenue growth.
The company reiterated its full-year revenue and earnings per share outlook after second-quarter results. With another strong quarterly report, investors and analysts may be seeking a raise in guidance.
The company is one of the largest holdings of Berkshire Hathaway Inc (NYSE:BRK) (NYSE:BRK), the conglomerate run by legendary investor Warren Buffett. American Express makes up around 16.7% of Berkshire’s investment portfolio with a 151.6 million share stake. Berkshire owns around 21.8% of American Express.
American Express’s quarterly results could have an impact on the Dow Jones Industrial Average as one of the largest holdings in the prominent stock market index. American Express is the eighth-largest holding in the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), which tracks the index, representing 4.4% of the ETF’s assets.
AXP Price Action: American Express stock traded at $333.02 on Wednesday, within a 52-week trading range of $220.43 to $349.19. American Express stock is up 11.6% year-to-date in 2025.
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