Can American Express Beat Q2 Earnings on Growing Network Volumes?

American Express Company AXPis set to report second-quarter 2025 results on July 18, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.86 per share, and the same for revenues is pinned at $17.69 billion.The second-quarter earnings estimate witnessed four upward revisions over the past 60 days against two downward movements. The bottom-line prediction indicates a year-over-year increase of 10.6%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 8.3%. Image Source: Zacks Investment ResearchFor the full year 2025, the Zacks Consensus Estimate for AmEx’s revenues is pegged at $71.24 billion, implying a rise of 8% year over year. Meanwhile, the consensus mark for current year EPS is pegged at $15.22, implying growth of around 14% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)AmExbeat the consensus estimate in each of the last four quarters, with the average surprise being 5.2%.Affirm Holdings, Inc. Price and EPS Surprise Affirm Holdings, Inc. price-eps-surprise | Affirm Holdings, Inc. QuoteQ2 Earnings Whispers for AmExOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.AXP has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.What is Shaping AmEx’s Q2 Results?American Express is expected to have witnessed a rise in network volumes during the second quarter, continuing the trend seen in the past quarters. This uptick is likely attributable to the resilient consumer spending of AXP’s premium customer base, which is less impacted by economic downturns. The Zacks Consensus Estimate for second-quarter total network volumes indicates 5.7% year-over-year growth from $440.6 billion.Discount revenues, a key source of revenues for AmEx, are likely to have benefited from rising network volumes. The Zacks Consensus Estimate for second-quarter Discount revenues indicates 11.8% year-over-year growth. Billed businesses in U.S. Consumer Services and Commercial Services are expected to have witnessed growth of 6.1% and 1.7% year over year, respectively.Cards-in-force are likely to have witnessed an uptick in the quarter under review due to expanding product offerings and enhancing mobile platforms, which improve the customer experience. The Zacks Consensus Estimate for second-quarter total cards-in-force indicates 3.2% year-over-year growth. The consensus estimate for Average Card Member loans also implies a 10% year-over-year increase.AmEx’s interest income, another major revenue contributor, is likely to have risen on higher loan receivables. The Zacks Consensus Estimate for AXP’s net interest income suggests an upside of 13% from the year-ago reported figure.The factors mentioned above are expected to have positioned American Express for not only year-over-year growth, but also an earnings beat in the second quarter. However, an increase in customer engagement and operating costsis likely to have partially offset the positive impacts.Second-quarter client engagement costs are likely to have increased due to expanding Card Member spending and higher usage of travel-related benefits. Also, the Zacks Consensus Estimate for pre-tax income from Global Merchant and Network Services indicates a 33.6% decline from a year ago.Other Stocks That Warrant a LookHere are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:American Tower Corporation AMT has an Earnings ESP of +1.08% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for American Tower’s bottom line for the to-be-reported quarter is pegged at $2.59 per share, which remained stable over the past week. The consensus estimate for American Tower’s revenues is pegged at $2.58 billion.Itaú Unibanco Holding S.A. ITUB has an Earnings ESP of +5.56% and a Zacks Rank of 2.The Zacks Consensus Estimate for Itaú Unibanco’s bottom line for the to-be-reported quarter is pegged at 18 cents per share, which remained stable over the past week. The consensus estimate for Itaú Unibanco’s revenues is pegged at $7.75 billion.SoFi Technologies, Inc. SOFI has an Earnings ESP of +14.95% and a Zacks Rank of 2.The Zacks Consensus Estimate for SOFI’s bottom line for the to-be-reported quarter is pegged at 6 cents per share, a significant jump from a penny a year ago. The consensus estimate for SOFI’s revenues is pegged at $805.91 million, a 35% year-over-year jump.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Tower Corporation (AMT): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report Itau Unibanco Holding S.A. (ITUB): Free Stock Analysis Report SoFi Technologies, Inc. (SOFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks