American Express stock falls on cautious first quarter revenue guidance

Investing.com
02-11

American Express Company (NYSE:AXP) shares fell Monday after the company's CFO issued negative revenue guidance for the first quarter.

Heading into the 1 PM ET hour on Wall Street, American Express' stock was down 2.3%.

Speaking at UBS Financial Services today, American Express CFO Christophe Le Caillec cautioned investors that first-quarter 2025 revenue would be lower than the fourth quarter. Wall Street was looking for first quarter revenue to be relatively flat from the fourth quarter.

Le Caillec stated that the consensus having flat quarter-over-quarter revenues in 1Q25 is unrealistic, given the fewer days in the first quarter compared to the fourth quarter and currency headwinds.  However, the CFO said the company remains confident in the full year revenue guidance.

Commenting on the news, BTIG analyst Vincent Caintic said they were "surprised" by it but noted they had already modeled revenue down 0.4% quarter-over-quarter. However, given the underperformance of 1Q25 versus the strength in 4Q24, Caintic said, "We are now inclined to believe that Amex will achieve closer to the lower end of its 2025 revenue guidance range (8-10% y/y) rather than the high end."

The news from American Express also pressured shares of rivals Capital One Financial (NYSE:COF) and Discover Financial Services (NYSE:DFS), which are both down about 2% in mid-day trading.

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