Integrated payments solutions provider American Express Company (AXP) has reported better-than-expected Q2 2021 results on the back of growth witnessed in net revenues.
Following the earnings, shares of the company gained 1.3% in Friday’s trading session. It added to its gains slightly to close at $173.25 in the extended trading session.
The company reported earnings per share (EPS) of $2.80, up from $0.29 a year ago, surpassing the Street’s estimate of $1.52.
The company reported quarterly net revenues of $10.24 billion, up 33% from $7.68 billion registered in the same quarter last year. Net revenues surpassed the consensus estimates of $9.41 billion. This growth can be primarily attributed to the revenues from the Global Commercial Services Group, which saw an increase of 35% from the previous year.
The CEO of American Express, Stephen J. Squeri, said, “Our strong second quarter results show that the steps we have taken to manage the company through the pandemic and our strategy of investing to rebuild our growth momentum are paying off. We acquired 2.4 million new proprietary cards in the quarter, while continuing to retain Card Members at rates above pre-pandemic levels.” (See American Express stock chart on TipRanks)
On July 25, Oppenheimer analyst Dominick Gabriele assigned a Buy rating to the stock with a price target of $193. The analyst’s price target implies upside potential of 11.4% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 6 Buys, 5 Holds and 2 Sells. The average American Express price target of $178.38 implies 3% upside potential from current levels.
American Express scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 80.8% over the past year.
Related News:
Pebblebrook Adds Jekyll Island Club Resort to its Portfolio for $94M
Visa to Scoop up Currencycloud for £700M; Street Says Buy
Uber to Snap up Transplace for $2.25B; Street Says Buy
