American Express Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

American Express (AXP) is scheduled to release its third-quarter earnings on Friday, October 17, with analysts forecasting EPS of $4.00 on $18.05 billion in revenue, indicating year-over-year growth. The company has consistently exceeded revenue estimates in three consecutive quarters and six of the last ten. Despite a 2.3% share price decline on Thursday, several leading analysts have recently reiterated their ratings while simultaneously increasing their price targets for AXP.

Analysis

American Express (AXP) is poised to report Q3 earnings on October 17, with analysts projecting robust year-over-year growth: EPS is expected to reach $4.00, up from $3.49, and revenue is forecast at $18.05 billion, an increase from $16.64 billion. This optimistic outlook is supported by AXP's recent track record of consistently exceeding revenue estimates, having done so in the last three consecutive quarters and six of the past ten.

Despite a 2.3% share price decline to $323.12 on Thursday, several prominent analysts have recently reiterated their ratings while simultaneously increasing their price targets for AXP. UBS, JP Morgan, Evercore ISI, Morgan Stanley, and Wells Fargo all maintained their respective ratings (Neutral, In-Line, Equal-Weight, Overweight) but raised price targets, with Wells Fargo's Donald Fandetti, holding the highest accuracy rate at 70%, boosting his target from $350 to $375.

The collective analyst sentiment, despite varied ratings, leans towards an upward revision in valuation, reflecting a moderately positive outlook for AXP's future performance. This suggests that the recent share price dip might be a short-term market reaction rather than a fundamental shift in the company's prospects. The consistent upward revisions in price targets across multiple firms indicate underlying confidence in AXP's business trajectory ahead of its earnings call.

Key Decisions for Investors

• Monitor AXP's Q3 earnings report closely for actual EPS and revenue figures against analyst expectations of $4.00 and $18.05 billion, respectively.
• Evaluate the company's forward guidance and management commentary for insights into future growth drivers and potential impacts on the recently raised price targets.
• Consider the recent 2.3% share price dip as a potential entry point, given the prevailing moderately positive analyst sentiment and consistent upward revisions in price targets.