American Express Reports Third-Quarter Earnings Per Share of $3.49, and Raises Full-Year 2024 EPS Guidance
American Express (NYSE: AXP) reported strong third-quarter results, with net income of $2.51 billion, or $3.49 per share, compared to $2.45 billion, or $3.30 per share, a year ago. The company achieved its 10th consecutive quarter of record revenue, rising 8% to $16.6 billion. Based on this performance, American Express raised its full-year 2024 EPS guidance to $13.75 - $14.05, up from $13.30 - $13.80 previously.
Key highlights include:
- Total Card Member spending increased 6%
- Card fee revenue growth accelerated to 18%
- 3.3 million new card acquisitions
- Completed 40 product refreshes globally since the beginning of the year
The company's continued momentum demonstrates the success of its product refresh strategy, particularly in attracting Millennial and Gen-Z consumers.
American Express (NYSE: AXP) ha riportato risultati forti del terzo trimestre, con un reddito netto di 2,51 miliardi di dollari, ovvero 3,49 dollari per azione, rispetto ai 2,45 miliardi di dollari, ovvero 3,30 dollari per azione, dello scorso anno. L'azienda ha raggiunto il suo 10° trimestre consecutivo di entrate record, aumentando dell'8% a 16,6 miliardi di dollari. Sulla base di queste performance, American Express ha alzato la sua previsione di EPS per l'intero anno 2024 a 13,75 - 14,05 dollari, rispetto ai precedenti 13,30 - 13,80 dollari.
Le principali evidenze includono:
- La spesa totale degli utilizzatori di carte è aumentata del 6%
- La crescita dei ricavi da commissioni sulle carte è accelerata al 18%
- 3,3 milioni di nuove acquisizioni di carte
- Completati 40 rinnovamenti di prodotto a livello globale dall'inizio dell'anno
Il continuo slancio dell'azienda dimostra il successo della sua strategia di rinnovo dei prodotti, in particolare nell'attrarre i consumatori Millennials e Gen-Z.
American Express (NYSE: AXP) reportó resultados sólidos en el tercer trimestre, con un ingreso neto de 2.51 mil millones de dólares, o 3.49 dólares por acción, en comparación con 2.45 mil millones de dólares, o 3.30 dólares por acción, hace un año. La compañía logró su 10° trimestre consecutivo de ingresos récord, aumentando un 8% a 16.6 mil millones de dólares. Basado en este desempeño, American Express aumentó su guía de EPS para todo el año 2024 a 13.75 - 14.05 dólares, en comparación con los 13.30 - 13.80 dólares anteriores.
Los puntos destacados incluyen:
- El gasto total de los miembros de la tarjeta aumentó un 6%
- El crecimiento de los ingresos por comisiones de tarjetas se aceleró al 18%
- 3.3 millones de nuevas adquisiciones de tarjetas
- Se completaron 40 renovaciones de productos a nivel global desde el inicio del año
El continuo impulso de la compañía demuestra el éxito de su estrategia de renovación de productos, especialmente en la atracción de consumidores Millenials y de la Gen-Z.
American Express (NYSE: AXP)는 3분기 실적이 우수하다고 발표했습니다, 순이익은 25억 1천만 달러, 주당 3.49달러로, 작년의 24억 5천만 달러, 주당 3.30달러와 비교됩니다. 회사는 10분기 연속 역대 매출 기록을 달성했습니다, 16억 6천만 달러로 8% 증가했습니다. 이러한 성과에 기반하여, American Express는 2024년 전체 연도 EPS 가이드를 상향 조정했습니다, 이전의 13.30 - 13.80달러에서 13.75 - 14.05달러로 조정했습니다.
주요 하이라이트는 다음과 같습니다:
- 총 카드 회원 소비가 6% 증가했습니다
- 카드 수수료 수익이 18%로 가속화되었습니다
- 330만 개의 새로운 카드 인수
- 올해 초부터 전 세계적으로 40개의 제품 리프레시가 완료되었습니다
회사의 지속적인 모멘텀은 제품 리프레시 전략의 성공을 보여주며, 특히 밀레니얼 및 Z세대 소비자를 유치하는 데 효과적입니다.
American Express (NYSE: AXP) a annoncé de solides résultats pour le troisième trimestre, avec un bénéfice net de 2,51 milliards de dollars, soit 3,49 dollars par action, contre 2,45 milliards de dollars, soit 3,30 dollars par action, l'année dernière. L'entreprise a atteint son 10ème trimestre consécutif de revenus record, augmentant de 8% pour atteindre 16,6 milliards de dollars. Sur la base de cette performance, American Express a augmenté sa prévision de BPA pour l'année 2024 à 13,75 - 14,05 dollars, contre 13,30 - 13,80 dollars précédemment.
Les points clés incluent :
- Les dépenses totales des titulaires de cartes ont augmenté de 6%
- La croissance des revenus des frais de carte s'est accélérée à 18%
- 3,3 millions de nouvelles acquisitions de cartes
- 40 mises à jour de produits complètes au niveau mondial depuis le début de l'année
Le dynamisme continu de l'entreprise démontre le succès de sa stratégie de renouvellement de produits, en particulier pour attirer les consommateurs Millennials et Gen-Z.
American Express (NYSE: AXP) hat starke Ergebnisse für das dritte Quartal berichtet, mit einem Nettogewinn von 2,51 Milliarden Dollar, oder 3,49 Dollar pro Aktie, im Vergleich zu 2,45 Milliarden Dollar, oder 3,30 Dollar pro Aktie, im Vorjahr. Das Unternehmen erzielte 10 aufeinanderfolgende Quartale mit Rekordumsätzen, ein Anstieg von 8 % auf 16,6 Milliarden Dollar. Basierend auf dieser Leistung hat American Express seine EPS-Prognose für das Gesamtjahr 2024 angehoben auf 13,75 - 14,05 Dollar, gegenüber zuvor 13,30 - 13,80 Dollar.
Wichtige Höhepunkte sind:
- Die gesamten Ausgaben der Karteninhaber stiegen um 6%
- Das Wachstum der Einnahmen aus Kartengebühren beschleunigte sich auf 18%
- 3,3 Millionen neue Kartenausgaben
- Seit Beginn des Jahres wurden weltweit 40 Produktaktualisierungen abgeschlossen
Der anhaltende Schwung des Unternehmens zeigt den Erfolg seiner Produktaktualisierungsstrategie, insbesondere bei der Gewinnung von Konsumenten der Millennial- und Gen-Z-Generation.
- Record quarterly revenue of $16.6 billion, up 8% year-over-year
- Earnings per share increased 6% to $3.49
- Raised full-year 2024 EPS guidance to $13.75 - $14.05
- Card fee revenue growth accelerated to 18%
- 3.3 million new card acquisitions
- Strong performance in attracting Millennial and Gen-Z consumers
- Consolidated provisions for credit losses increased to $1.4 billion from $1.2 billion a year ago
- Net write-off rate increased to 1.9% from 1.8% a year ago
- Consolidated expenses rose 9% to $12.1 billion
Insights
American Express delivered a robust Q3 performance, with revenue reaching a record $16.6 billion, up
- Strong card member spending, up
6% - Accelerated card fee revenue growth of
18% - Net interest income growth from increased loan volumes
The company's focus on premium card members and product refreshes is paying off, particularly with Millennial and Gen-Z consumers. AXP's raised full-year EPS guidance to
American Express's strategy of targeting younger demographics is yielding significant results. The fact that 80% of new U.S. Consumer Gold Card accounts are from Millennials and Gen-Z showcases the company's successful pivot towards these important market segments. This demographic shift is likely to drive long-term growth and customer loyalty.
The completion of 40 product refreshes globally this year demonstrates AXP's commitment to innovation and meeting evolving consumer needs. The focus on popular categories like dining aligns well with younger consumers' preferences. However, the company must balance these investments with the
The stable
10th Consecutive Quarter of Record Revenue, Rising
(Millions, except per share amounts, and where indicated) |
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Total Revenues Net of Interest Expense |
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FX-adjusted1 |
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Net Income |
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Diluted Earnings Per Common Share (EPS)2 |
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Adjusted EPS Excluding Transaction Gain3 |
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Average Diluted Common Shares Outstanding |
709 |
733 |
(3)% |
716 |
739 |
(3)% |
“We had another strong quarter that reflects the earnings power of our business model and our continued investments for growth. Third-quarter revenue reached another record of
“Based on our performance to date and the strong earnings our core business is generating, we are raising our full-year EPS guidance to
“In the third quarter, total Card Member spending increased 6 percent, and card fee revenue growth accelerated to 18 percent. We continued to attract large numbers of new premium Card Members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline.
“Our continued momentum demonstrates the sustainability of our product refresh strategy and the growth it is driving in our portfolio. We have already completed 40 product refreshes globally since the beginning of the year, including the recent launch of our new
Third-quarter consolidated total revenues net of interest expense were
Consolidated provisions for credit losses were
Consolidated expenses were
The consolidated effective tax rate was 21.8 percent, up from 20.9 percent a year ago, primarily reflecting discrete tax benefits in the prior-year period.
This earnings release should be read in conjunction with the company’s statistical tables for the third quarter 2024, which include information regarding our reportable operating segments, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss third-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.
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1 |
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As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into |
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2 |
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Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards of |
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3 |
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Adjusted diluted earnings per common share, a non-GAAP measure, excludes the |
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4 |
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Net write-off rates are based on principal losses only (i.e., excluding interest and/or fees) and represent consumer and small business Card Member loans and receivables (net write-off rates based on principal losses only are unavailable for corporate). We present a net write-off rate based on principal losses only to be consistent with industry convention. Net write-off rates including interest and fees are presented in the Statistical Tables for the third quarter of 2024 available on the above-mentioned American Express Investor Relations website, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses. |
As used in this release:
- Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.
- Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.
- Reserve releases and reserve builds represent the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition, and credit quality of portfolios. Reserve releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.
- Variable customer engagement costs represent the aggregate of Card Member rewards, business development, and Card Member services expenses.
ABOUT AMERICAN EXPRESS
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, X.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.
Source: American Express Company
Location: Global
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s outlook for 2024 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, those that are set forth under the caption “Cautionary Note Regarding Forward-Looking Statements” in the company’s current report on Form 8-K filed with the Securities and Exchange Commission (SEC) on October 18, 2024 (the Form 8-K Cautionary Note), which are incorporated by reference into this release. Those factors include, but are not limited to, the following:
-
the company’s ability to achieve its 2024 earnings per common share (EPS) outlook and grow EPS in the future, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, customers, colleagues, marketing, technology and coverage), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraph and the Form 8-K Cautionary Note, as well as the following: macroeconomic conditions, such as recession risks, higher rates of unemployment, changes in interest rates, effects of inflation, supply chain issues, energy costs, tariffs and fiscal and monetary policies; geopolitical instability, including the ongoing
Ukraine andIsrael wars, broader regional hostilities and tensions involvingChina and theU.S. ; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the company’s reputation; impacts related to sales and acquisitions and new or renegotiated cobrand and other partner agreements and joint ventures; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with Card Members, partners and merchants; and
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the company’s ability to achieve its 2024 revenue growth outlook and grow revenues net of interest expense in the future, which could be impacted by, among other things, the factors identified above and in the Form 8-K Cautionary Note, as well as the following: spending volumes and the spending environment not being consistent with expectations, including a decline in spending by
U.S. small and mid-sized enterprise Card Members, or a slowdown inU.S. consumer or international spending volumes; an inability to address competitive pressures, attract and retain customers, invest in and enhance the company’s Membership Model of premium products, differentiated services and partnerships, successfully refresh its card products, grow spending and lending with customers across age cohorts, including Millennial and Gen-Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives, including pricing and network regulation; merchant coverage growing less than expected or the reduction of merchant acceptance; increased surcharging, steering, suppression or differential acceptance of the company’s products; merchant discount rates changing by a greater or lesser amount than expected; and changes in foreign currency exchange rates.
A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2024 and the company’s other reports filed with the SEC, including in the Form 8-K Cautionary Note.
(Preliminary) |
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American Express Company |
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Appendix I |
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Reconciliation of Adjusted EPS Excluding Transaction Gain |
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Quarters Ended September 30, |
|
Nine Months Ended September 30, |
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|
2024 |
2023 |
YoY% Inc/(Dec) |
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2024 |
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2023 |
YoY% Inc/(Dec) |
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GAAP Diluted EPS |
$ |
3.49 |
$ |
3.30 |
6 |
% |
|
$ |
10.97 |
|
$ |
8.59 |
28 |
% |
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Accertify Gain on Sale (pretax) |
$ |
— |
$ |
— |
|
|
$ |
0.73 |
|
$ |
— |
|
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Tax Impact of Accertify Gain on Sale |
$ |
— |
$ |
— |
|
|
$ |
(0.07 |
) |
$ |
— |
|
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Accertify Gain on Sale (after tax) |
$ |
— |
$ |
— |
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|
$ |
0.66 |
|
$ |
— |
|
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Adjusted Diluted EPS Excluding the Impact of Accertify Gain on Sale |
$ |
3.49 |
$ |
3.30 |
6 |
% |
|
$ |
10.31 |
|
$ |
8.59 |
20 |
% |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241017171332/en/
Media Contacts:
Melanie Backs, Melanie.L.Backs@aexp.com, +1.212.640.2164
Deniz Yigin, Deniz.Yigin@aexp.com, +1.332.999.0836
Investors/Analysts Contacts:
Kartik Ramachandran, Kartik.Ramachandran@aexp.com, +1.212.640.5574
Kristy Ashmawy, Kristy.Ashmawy@aexp.com, +1.212.640.5574
Source: American Express Company
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