American Express (NYSE:AXP) posts Q2 results on Friday, providing a gauge of whether consumers are still catching up on their travel after the pandemic restricted their wanderlust in 2020 and 2021.
The credit card company is expected to earn $2.81 per share in Q2 2023, compared with EPS of $2.40 in Q1 and $2.57 in Q2 2022. Revenue is seen rising to $15.4B from $14.3B in the previous quarter and from $13.4B in the year-ago period.
Watch for any change to the company’s guidance. In April, AXP reaffirmed its 2023 EPS outlook of $11.00-$11.40 ($11.04 consensus) and revenue growth guidance of 15%-17%.
Oppenheimer analyst Dominick Gabriele suspects that consensus estimates for American Express’s (AXP) 2023 and 2024 network volumes may be too high by 1.5% on average. The company’s monthly U.S. consumer and U.S. small- and medium business data suggest total network volume is poised to slow from 13.9% to ~10.6% Y/Y, he said in a note dated June 29.
The Visible Alpha consensus estimate for 2023 network volume stands at $1.72T and the 2024 consensus is $1.89T. For Q2 2023, network volume is expected to be $434.7B, up from $398.9B in Q1 2023.
On average, analysts expect net interest income of $3.06B, according to the Visible Alpha consensus, vs. $2.98 B in Q1 and $2.36B in Q2 2022.
Investors are keeping a close eye on credit quality as consumers continue to revert to prepandemic spending patterns. Provision for credit losses is expected to be $1.15B (Visible Alpha consensus) compared with $1.06B in the prior quarter and $410M a year ago.
American Express (AXP), though, is known for its high-credit-score customers. In June, its U.S. Consumer Card Member delinquency rate held steady at 1.1% and remained below the 1.4% rate in June 2019, before the pandemic. Its net-write-off rate crept up to 1.8% from 1.6% in May.
In the past 12 quarters, American Express’s (AXP) EPS has come in very close to consensus most of the time, slightly missing in the past two quarters. Its revenue performance is dicier, missing the consensus four times during the same period.
More on American Express:
American Express Q2 results on tap: Are consumers still revenge traveling?
- Advertisment - 
Recent Comments
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer