FMP
Oct 18, 2024 3:00 PM - Gordon Thompson
Image credit: Google Images
American Express (NYSE:AXP) is a leading global financial services company known for its credit card, charge card, and travel-related services. It operates in the Zacks Financial - Miscellaneous Services industry, competing with other financial giants like Visa and Mastercard. On October 18, 2024, American Express reported earnings per share (EPS) of $3.49, surpassing the estimated $3.29.
The company's EPS of $3.49 not only exceeded the Zacks Consensus Estimate of $3.27 but also marked a 6% increase from the $3.30 reported in the same quarter last year. This resulted in an earnings surprise of 6.73%. Over the past four quarters, American Express has exceeded consensus EPS estimates three times, showcasing its consistent performance.
Despite a slight revenue miss, with $16.64 billion reported against the estimated $16.68 billion, American Express achieved an 8% increase from the $15.38 billion reported a year ago. This growth reflects the company's ability to drive revenue, even as it only topped consensus revenue estimates once in recent quarters.
American Express's net income rose by 2% to $2.51 billion, compared to $2.45 billion in the third quarter of 2023. The company raised its full-year EPS guidance to a range of $13.75 to $14.05, up from the previous $13.30 to $13.80, and continues to project a revenue growth of approximately 9% from the previous year.
The company's financial metrics, such as a price-to-earnings (P/E) ratio of 19.81 and a price-to-sales ratio of 2.87, indicate a strong market valuation. However, with a debt-to-equity ratio of 1.80 and a current ratio of 0.35, American Express faces challenges in terms of leverage and short-term liquidity. Despite these challenges, CEO Stephen Squeri remains confident in the company's strategy and growth potential.
Nov 22, 2024 5:08 AM - Parth Sanghvi
Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...
Dec 17, 2024 8:58 AM - Sanzhi Kobzhan
Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...
Dec 22, 2024 7:59 AM - Sanzhi Kobzhan
When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...