American Express (NYSE: AXP) Surpasses Earnings and Revenue Estimates

• Earnings Per Share (EPS) of $3.64, beating the estimated $3.47.
• Revenue reached approximately $16.97 billion, slightly above the forecast of $16.94 billion.
• Shares rose by less than 1% post-announcement, despite a 15% decline year-to-date.

American Express (NYSE: AXP) is a leading global financial services company known for its credit card, charge card, and travel-related services. Competing with giants like Visa and Mastercard, American Express reported an EPS of $3.64 on April 17, 2025, surpassing the estimated $3.47. The company also reported a revenue of approximately $16.97 billion, slightly exceeding the estimated $16.94 billion.

The company's quarterly earnings reveal a profit of $3.64 per share, surpassing the Zacks Consensus Estimate of $3.45. This marks an improvement from the previous year's earnings of $3.33 per share. The positive growth trajectory is driven by robust consumer spending, as highlighted by CEO Stephen Squeri. He noted that consumer spending in the first quarter was consistent with, and often better than, 2024 levels.

American Express's revenue increased by 7% year-over-year to $16.97 billion, exceeding analysts' predictions. Net interest income also slightly surpassed expectations, reaching $4.17 billion compared to the consensus of $4.10 billion.

Despite the positive earnings report, American Express shares rose by less than 1% immediately following the announcement. The stock had been down approximately 15% for the year. Recently, Bank of America analysts upgraded the stock's rating to "buy," citing the company's "high-quality customer base" as a factor that would support its resilience.

American Express maintains a price-to-earnings (P/E) ratio of approximately 17.76, indicating the market's valuation of its earnings. The company's price-to-sales ratio stands at about 2.52, and the enterprise value to sales ratio is around 2.67. The debt-to-equity ratio is about 1.69, indicating the company's leverage level.