American Express Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component American Express Company (NYSE:AXP) will unveil its latest earnings on Wednesday, July 20, 2011. American Express Company is a global payments, network and travel company, which offers credit card products and travel-related services to consumers and businesses on an international scale.

American Express Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 98 cents per share, a rise of 16.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 97 cents. Between one and three months ago, the average estimate moved up, but has dropped from 99 cents during the last month. For the year, analysts are projecting profit of $3.88 per share, a rise of 13.8% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of 97 cents per share against a mean estimate of profit of 93 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $7.35 billion in revenue this quarter, a rise of 7.1% from the year ago quarter. Analysts are forecasting total revenue of $29.58 billion for the year, a rise of 6.3% from last year’s revenue of $27.82 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, two rating it as a sell and three rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 33% while it rose 48.3% in the fourth quarter of the last fiscal year and 70.8% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 5.8% to $7.62 billion in first quarter. The figure rose 12.4% in the fourth quarter of the last fiscal year from the year earlier, climbed 16.5% in the third quarter of the last fiscal year from the year-ago quarter and 12.5% in the second quarter of the last fiscal year.

Competitors to Watch: Discover Financial Services (NYSE:DFS), Capital One Financial Corp. (NYSE:COF), Bank of America Corp. (NYSE:BAC), Visa Inc. (NYSE:V), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), SLM Corporation (NYSE:SLM), First Investors Financial Services Group (FIFS), and CompuCredit Holdings Corp (NASDAQ:CCRT).

Stock Price Performance: During April 18, 2011 to July 14, 2011, the stock price had risen $5.49 (12%) from $45.89 to $51.38. The stock price saw one of its best stretches over the last year between October 22, 2010 and November 2, 2010 when shares rose for eight-straight days, rising 8.6% (+$3.32) over that span. It saw one of its worst periods between September 28, 2010 and October 7, 2010 when shares fell for eight-straight days, falling 13% (-$5.60) over that span. Shares are up $8.96 (+21.1%) year to date.

(Source: Xignite Financials)

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