American Express Reports Strong Earnings Outlook for 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.