Market Overview

Earnings Outlook For American Express

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American Express (NYSE:AXP) announces its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

American Express EPS will likely be near $1.31 while revenue will be around $9.35 billion, according to analysts. In the same quarter last year, American Express reported EPS of $2.03 on revenue of $11.37 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 35.47%. Revenue would be down 17.73% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.33 -0.11 1.43 2.01
EPS Actual 1.30 0.29 1.98 2.03
Revenue Estimate 8.66 B 8.15 B 10.65 B 11.36 B
Revenue Actual 8.75 B 7.67 B 10.31 B 11.37 B

Stock Performance

Over the past 52-week period, shares of American Express have declined 7.05%.

Do not be surprised to see the stock move on comments made during its conference call. American Express is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings