Where We Expect American Express’ Revenue Growth To Come From
American Express (NYSE: AXP) generates close to two-thirds of its revenue from transaction fees charged on card transactions. Over the 2016-2020 period, we expect its revenue to grow by close to 10%. Over the same period we expect most of this revenue growth to be contributed by revenue from transaction fees, as the company tries to make its debit and credit cards as universally acceptable as Visa and Master Card issued cards. This would mean that the company would have to increase its network of co-branding partners and possibly lower its transaction fees. We have written previously about the potential impact of increase in transaction fees on American Express’ stock price and why we expect its transaction fees to decline.
Have more questions about American Express? See the links below:
- How Much Did American Express’ Revenue & Net Profit Grow In The Last Five Years?
- How Much Can American Express’ Revenue Grow In The Next Five Years?
- What Is American Express’ Fundamental Value Based On Expected 2016 Results?
- How Has American Express’ Revenue Composition Changed In The Last Five Years?
- Up 25% YTD, What To Expect From American Express Stock?
- American Express Stock To Beat The Expectations In Q3
- What To Expect From American Express Stock?
- American Express Stock To Top The Consensus In Q2
- American Express Stock Is Attractive At The Current Levels
- American Express Stock To Post Mixed Results In Q4?
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