American Express (AXP) slid in pre-market trading even as the company raised its FY24 forecast. The payments processing giant now expects FY24 earnings to be in the range of $13.30 to $13.80 per share, compared to its prior forecast of $12.65 to $13.15 per share. The company continues to anticipate that its revenues will grow in the range of 9% to 11% year-over-year.
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AXP’s Q2 Results
AXP’s adjusted earnings increased by 21% year-over-year to $3.49 per share, which beat analysts’ consensus estimate of $3.26 per share.
The company’s revenues increased 9% year-over-year to $16.33 billion but missed analysts’ expectations of $16.6 billion.
AXP’s management stated that the robust earnings were driven by the increasing scale of its business. Elaborating further, the company’s Chairman and CEO, Stephen J. Squeri, stated that since 2021, American Express has increased its revenues by nearly 50%, raised spending by its card members by almost 40%, and added 23 million new cards and 30 million merchant locations. This has bolstered its core business, as indicated by the results.
Is AXP a Good Stock to Buy Now?
Analysts remain sidelined about AXP stock, with a Hold consensus rating based on seven Buys, nine Holds, and three Sells. Over the past year, AXP has surged by more than 40%, and the average AXP price target of $241.24 implies a downside potential of 3.2% from current levels. These analyst ratings are likely to change following AXP’s Q2 results today.
