No. of Recommendations: 5
Couldn’t pull up the BRKB chart or commentary but was able to pull up Value Line’s AXP commentary:
“It's been a prosperous year, thus far, for American Express . Through the first six months, profits climbed 13.2%, to $7.72 a share, compared to the $6.82 tally that was posted in 2024. (Note that last year's amount excludes a $0.66-per-share gain from the sale of Accertify, Inc., a provider of fraud-prevention services.) The good showing was made possible partially by a 10.5% increase in the top line, supported by higher net interest income and noninterest revenues (including net card fees and discount revenue). Leadership adds that it continued to observe strength in spending by Millennial and Gen Z customers. A diminished number of diluted shares outstanding also helped results to a certain degree during the period. But the company's total expenses rose 12.0%, reflecting increases in such categories as card member rewards, business development, and card member services. Although economic conditions bear monitoring, it appears that, at this juncture, full-year
earnings per share will finish around $15.25. That would indicate a 14% advance relative to 2024's $13.35 figure. Turning to 2026, the bottom line stands to grow an additional 10% or so, to $16.80 a share, if the business climate cooperates, of course. Finances look impressive. When the June interim concluded, cash and equivalents were an astounding $57.9 billion. What's more, American Express possessed a $4.0 billion bank credit facility that matures in October, 2026. Also, short-term borrowings were a very manageable $1.5 billion. However, it is important to state that the level of long-term debt seemed to be on the heavy side, at 64% of total capital. Nevertheless, we believe that the company will continue to easily handle its commitments. These Dow-30 shares have staged a big rally since our last full-page review three months ago. It seems that price movement has been fueled partially by American Express' good second-quarter results…
Another positive is the equity's decent 18-month capital appreciation potential. But upside possibilities out to 2028-2030 are negligible. The dividend yield is subpar, as well. Frederick L. Harris, III August 1, 2025“
