American Express Q3 Earnings: Double Digit Revenue And Profit Growth, Network Volumes Surge

American Express Co AXP Q3 revenue (net of interest expense) grew 12% year-on-year to $15.38 billion, beating the consensus of $15.36 billion. EPS of $3.30 beat the consensus of $2.94.

Card Member spending grew 7% on an FX-adjusted basis, driven by double-digit U.S. Consumer and International Card Member spending growth. Total Network Volumes increased 7% Y/Y to $420.2 billion.

U.S. Consumer Services revenue was $7.2 billion, up 16% Y/Y. Commercial Services revenue was $3.7 billion, up 7% Y/Y.

International Card Services revenue was $2.6 billion, up 17% Y/Y. Global Merchant and Network Services revenue was $1.9 billion, up 11% Y/Y.

Total expenses declined by 1% Y/Y to $859 million, reflecting lower customer engagement costs. 

Provision for credit losses stood at $1.23 billion, compared with $778 million a year ago, reflecting higher net write-offs partially offset by a lower net reserve build of $321 million. 

Chair and CEO Stephen J. Squeri said, "Overall card member spending was strong, and credit performance remained best-in-class, reflecting its premium global customer base."

"Travel and Entertainment spending remained robust. Restaurant spending was again one of its fastest-growing T&E categories, and the Resy restaurant platform continued to generate high user engagement."

FY23 Outlook: The company is on track to achieve revenue growth and EPS for the entire year, consistent with the annual guidance provided at the start of the year. 

During the Q2 release in July, American Express reaffirmed guidance for revenue growth of 15% - 17% (consensus of $60.67 billion) and EPS of $11.00 - $11.40 (consensus of $11.1).

Price Action: AXP shares are trading higher by 0.01% at $149.64 premarket on the last check Friday.