American Express Q4 Earnings: Revenue Beat, Record Spending and Card Acquisitions, 17% Dividend Hike And More

On Friday, American Express Co AXP reported fourth-quarter revenue (net of interest expense) growth of 9% year-on-year to $17.18 billion, topping the analyst consensus estimate of $17.16 billion. 

The increase was primarily driven by strong Card Member spending, higher net interest income supported by growth in revolving loan balances, and accelerated card fee growth.

GAAP EPS of $3.04 was in line with the analyst consensus estimate. 

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Card Member spending or Billed Business grew 8% Y/Y to $408.4 billion. U.S. Consumer Services revenue was $8.25 billion, up 12% Y/Y. Commercial Services revenue was $4.12 billion, up 8% Y/Y.

International Card Services revenue was $2.99 billion, up 11% year over year, and Global Merchant and Network Services revenue was $1.89 billion, down 2% year over year.

Total expenses increased by 11% year over year to $13.1 billion, primarily reflecting higher variable customer engagement costs and marketing investments. 

Provision for credit losses stood at $1.3 billion, compared with $1.4 billion a year ago, reflecting lower net reserve build. 

Dividend: American Express plans to increase the regular quarterly dividend by 17% to $0.82 per share, beginning with the first quarter of 2025.

Chair and CEO Stephen J. Squeri flagged record levels of annual Card Member spending, record net card fee revenues, and a record 13 million new card acquisitions in 2024 and continued to add millions of merchant locations to its network globally.

FY25 Outlook: Amex expects revenue of $71.22 billion-$72.54 billion (up by 8%-10% Y/Y) versus a consensus of $71.28 billion. It expects EPS of $15.00–$15.50 versus the consensus of $15.23.

Price Action: AXP stock is up 0.11% at $326.24 premarket at the last check on Friday.

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