American Express (NYSE:AXP) Earnings Preview: What to Expect

• American Express is expected to report an EPS of $3.03 for Q4 2024, indicating a 15.7% year-over-year growth.
• Revenue for Q4 2024 is projected at $17.18 billion, showcasing an 8.7% increase from the previous year.
• The company's stock has surged over 70% in the past year, significantly outperforming its peers.

American Express (NYSE:AXP) is a leading global financial services company known for its credit card, charge card, and travel-related services. Competing with giants like Capital One and Mastercard, American Express is gearing up to release its fourth-quarter 2024 earnings on January 24, 2025, before the market opens.

Analysts are optimistic, expecting American Express to report an EPS of $3.03, slightly above the Wall Street estimate of $3. This represents a 15.7% increase from the previous year, highlighting the company's robust performance. Revenue is projected to reach $17.18 billion, reflecting an 8.7% year-over-year growth, as highlighted by Zacks.

The company's network volumes are anticipated to have increased, continuing the positive trend from previous quarters. For the entire year, American Express is expected to achieve revenues of $65.95 billion, marking a 9% increase from the prior year. The consensus estimate for the company's EPS for the current year is $13.40, indicating a substantial 19.5% year-over-year growth.

American Express has seen its stock price soar over 70% in the past year, reaching fresh 52-week highs of $319 per share. This performance significantly outpaces its peers, with Capital One rising 49% and Mastercard increasing by 20%. Investors are eager to see if this momentum can be maintained with the upcoming earnings report.

Despite a mixed track record in earnings, American Express has shown consistent growth throughout 2024. The company's premium valuation is supported by its strong brand and a customer base that leans towards higher-tier clients. With a price-to-earnings (P/E) ratio of 23.06 and a debt-to-equity ratio of 1.85, American Express maintains a balanced financial position.