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American Express (NYSE:AXP) is expected to report a strong year-over-year gain in earnings when it posts its Q1 earnings on April 19, Friday before the bell.
The consensus EPS Estimate is $2.98 (+24.2 Y/Y) and the consensus Revenue Estimate is $15.79B (+10.6% Y/Y).
The combination of a lucrative capital return policy and respectable growth makes the stock appealing, said SA analyst, Christopher Robb.
Robb expects the stock to be able to meet or exceed expectations because of strong growth strategies in younger generations and international markets.
However, earlier in April Barclays downgraded the credit card stock to Equalweight from Overweight citing reasons such as: upside from further multiple re-rating is limited; Street EPS estimates appear well-calibrated, making material upward EPS revisions appear unlikely; and Barclays models a moderate deceleration in revenue growth into Q1…
