News
John Smaug
- January 26, 2024
American Express has announced a positive earnings outlook for 2024 following strong consumer spending that boosted their financial results in the fourth quarter of 2023.
Financial Performance
In the fourth quarter, American Express reported a net income of $1.93 billion, or $2.62 per share, compared to $1.57 billion, or $2.07 per share, in the previous year. This surpasses the expectations of analysts surveyed by FactSet who predicted earnings of $2.64 per share.
Furthermore, the company's revenue increased by 11% to reach $15.8 billion, slightly lower than the projected $16 billion.
Future Growth
Looking ahead to 2024, American Express aims to achieve revenue growth between 9% and 11%. Additionally, they expect earnings per share to range from $12.65 to $13.15, exceeding analysts' estimated value of $12.38 per share.
Credit Loss Provision
Despite reporting a 40% increase in the provision for credit losses in the fourth quarter, reaching $1.44 billion due to higher write-offs, American Express assures investors of its strong credit metrics. The write-off and delinquency rates for total card member loans and receivables remain below pre-pandemic levels.
Favorable Demand for Premium-Branded Cards
CEO Stephen Squeri highlights the continued strong demand for American Express' premium-branded cards.
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