The credit card provider’s partnerships with other companies
like Delta Air Lines (NYSE: DAL) are also likely to benefit revenues during the
quarter. The growth in revenues will prove beneficial to the bottom line numbers.
However higher expenses related to customer services are likely to put pressure
on margins during the period.
In the first quarter of 2019, Amex beat earnings estimates but missed the mark on revenue. Revenue grew 7% year-over-year to $10.36 billion while adjusted EPS grew 8% to $2.01. The company saw revenue increases across all its segments.
For fiscal year 2019, Amex has guided for GAAP EPS to come
in the range of $7.64-8.14 and adjusted EPS in the range of $7.85-8.35. The
company expects revenue to grow 8-10% during the year.
American Express’ shares have gained 27% in the trailing 52 weeks and over 35% so far this year. The majority of analysts have rated the stock as Hold while others have rated it as Buy.