:max_bytes(150000):strip_icc()/GettyImages-1734335092-fc09a5dd72e64a46ab30049d55d5683f.jpg "American Express Posts Earnings Beat, Affirms 2024 Growth Projections")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1734335092-fc09a5dd72e64a46ab30049d55d5683f.jpg)
Key Takeaways
- American Express released first-quarter results Friday that beat analyst estimates.
- Revenue, net income, and diluted earnings per share (EPS) all came in above expectations, and American Express also was able to avoid the fate of several other financial firms by reporting higher net interest income than anticipated.
- American Express affirmed its full-year guidance for fiscal 2024, projecting year-over-year revenue growth of 9% to 11% and EPS of $12.65 to $13.15.
American Express (AXP) on Friday reported first-quarter revenue and profit that came in above analyst expectations, and affirmed full-year growth guidance for 2024.
American Express reported revenue of $15.8 billion, just above consensus analyst estimates compiled by Visible Alpha of $15.76 billion. Net income of $2.44 billion and diluted earnings per share (EPS) of $3.33 were well above estimates of $2.17 billion and $2.96 per share, respectively.
Unlike several of its peers in the finance industry that reported lower net interest income than expected in recent earnings reports, American Express posted $3.77 billion of profit in the metric, ahead of expectations of $3.66 billion.
“We continue to attract high-spending, high credit-quality customers to the franchise, with new card acquisitions accelerating sequentially to 3.4 million in the quarter,” American Express Chief Executive Officer (CEO) Stephen Squeri said. “Our fee-based products accounted for around 70 percent of the new account acquisitions we saw in the quarter, and we continue to see strong demand from Millennial and Gen Z consumers, who accounted for over 60 percent of new consumer account acquisitions globally.”
American Express affirmed its full-year guidance for fiscal 2024, projecting year-over-year revenue growth of 9% to 11% and EPS of $12.65 to $13.15.
Last month, American Express announced a bump to its quarterly dividend to 70 cents per share, up from the previous mark of 60 cents.
American Express shares initially fell 2% in premarket trading following the earnings report’s release before reversing course, and were up more than 3% at $224.48 as of 10:17 a.m. ET. The stock has gained about 20% so far this year.