Why Shares of American Express Are Falling Today

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Why Shares of American Express Are Falling Today

Shares of the credit card and

This is the hidden content, please

• Sign In
• or
• Sign Up

company American Express (NYSE: AXP) had fallen over 2% as of 1:41 p.m. ET today after management tempered investors’ expectations about near-term top-line growth at an investor conference this morning.

American Express CFO Christophe Le Caillec told investors at a conference that expectations for revenue in the first quarter of 2025 are “too high” right now. Wall Street analysts currently expect revenue net of interest expense to come in at close to $17.1 billion, according to data provided by Visible Alpha. Le Caillec attributed lower revenue growth due to there being one less day in the first quarter and a stronger dollar now than in December. Revenue net of interest expense grew 9% in the fourth quarter.

Le Caillec did say that management is ” … very confident and very comfortable with the full-year guidance.” A few weeks ago, management said it expects the company to generate between 8% to 10% revenue growth and earnings per share of $15 to $15.50 in 2025. Management also said it expects to increase the company’s quarterly dividend by 17%.

At over 20 times forward earnings, American Express doesn’t trade at its most expensive historical valuation but is trading at elevated levels. The good news is the backdrop for financials

This is the hidden content, please

• Sign In
• or
• Sign Up

in recent months from a steepening yield curve to a consumer that is now looked upon with more strength by the market.

American Express is also a proven company with a strong management team and business that includes a customer base that should be more resilient during recessions. I’m indifferent on the stock right now. I think the business will keep performing well and likely serve shareholders well long term, but there could be pullbacks in the near future that investors may want to wait for as well.

Before you buy stock in American Express, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 

This is the hidden content, please

• Sign In
• or
• Sign Up

for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $795,728!*

Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 175% for the S&P 500. Don’t miss out on the latest top 10 list.

This is the hidden content, please

• Sign In
• or
• Sign Up

Story Continues

This is the hidden content, please

• Sign In
• or
• Sign Up

#Shares #American #Express #Falling #Today

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up