American Express stock falls on cautious first quarter revenue guidance

Investing.com
11 Feb

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.

Related Articles

American Express stock falls on cautious first quarter revenue guidance

Google CEO says biggest risk in AI is 'missing out'

UBS whistleblower verdict thrown out despite US Supreme Court win

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10