American Express Reports Third-Quarter 2024 Financial Results
American Express Company (NYSE: AXP) reported its financial results for the third quarter ending September 2024, marking its 10th consecutive quarter of record revenue, with an 8% increase year-over-year.
Key Financial Metrics:
| Metric | Q3 2024 Actual | Q3 2023 Actual | YoY Change (%) | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $16.6 billion | $15.4 billion | +8% | $16.67 billion |
| Earnings Per Share (EPS) | $3.49 | $3.30 | +6% | $3.28 |
| Net Income | $2.51 billion | $2.45 billion | +2.4% | Not provided |
Interpretation: American Express exceeded EPS expectations while slightly underachieving in revenue compared to Wall Street consensus estimates. The company's robust revenue growth was primarily driven by increases in net interest income and card fee revenues, while maintaining stable card member spending.
Revenue Performance by Segment:
| Segment | Quarterly Revenue | Interpretation |
|---|---|---|
| Card Member Spending | +6% | Positive growth, driven by increased cardholder activity. |
| Card Fee Revenues | +18% | Accelerated growth highlights success in attracting new premium Card Members. |
Operational Highlights:
- Increased total card member spending by 6%.
- Card fee revenue growth accelerated to 18%.
- Acquired 3.3 million new premium card members.
- Completed 40 global product refreshes, including the U.S. Consumer Gold Card.
Comments from Company Officers:
Chairman and CEO Stephen J. Squeri noted the company's continued momentum, citing strong earnings driven by investments in product refresh strategies and appealing value propositions. He emphasized growth in millennial and Gen-Z customer segments, which make up 80% of the new accounts in their U.S. Consumer Gold Card offering.
Forward Guidance:
American Express raised its full-year EPS guidance to the range of $13.75 - $14.05, up from the previous range of $13.30 - $13.80. The company continues to anticipate full-year revenue growth around 9%, consistent with its annual guidance range.
Stock Price Movement:
Following the earnings release, American Express experienced a 0.66% increase in its stock price, reflecting positive investor sentiment towards the reported results.
Conclusion:
American Express delivered another strong quarter, underscored by a strategic focus on product enhancements and expanding their customer base across various demographics. Despite slightly missing revenue expectations, the firm's solid EPS performance and optimistic guidance underscore its resilience and growth potential in the current market environment.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
