Industrials

American Express (AXP) maintaining its 2024 guidance backs the belief that mid-teens earnings per share growth is achievable and sustainable amid a slower revenue environment, RBC said in a note. Analysts, including Jon G. Arfstrom, said in a Friday note that the company’s management continues to be confident about its long-term growth trajectory and ability to sustain the current spending momentum, particularly domestically. “Over the medium to long term, we believe the company has significant opportunities to build upon its leading market share in the small business and corporate card space with its targeted investments in technology and its digital platform. We also see opportunities for the company to increase penetration over time in international markets,” the analysts said. The analysts added that they are adjusting their 2024 EPS estimate from $12.80 to $13.10 and 2025 EPS from $15 to $15.15. American Express said in its Q1 earnings report that

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our 12-month target price by $20 to $290, applying a forward P/E of 19.5x our 2025 earnings estimate, a wider risk premium than the peer average of 8.1x given more consistent earnings performance, lower credit risk, and superior growth prospects. We raise our 2024 EPS estimate by $0.31 to $13.29 and increase 2025’s by $0.51 to $14.91. AXP reported Q1 EPS of $3.33 vs. $2.40 a year ago, a $0.35 earnings beat. It was another strong quarter for AXP as net write-offs of 2.1% were best in-class. Additionally, AXP’s product refreshments appear to be paying off as it acquired 3.4 million cards in the quarter vs. 2.9 million in Q4. Furthermore, after several straight quarters of decelerating growth, we were encouraged with discount revenue growth

American Express’ (AXP) first-quarter results increased on a yearly basis and topped market estimates, while the payments company reiterated its full-year outlook for earnings and revenue growth. Per-share earnings came in at $3.33 for the three months through March 31, rising from $2.40 the year before and ahead of the consensus on Capital IQ for $2.96. Revenue, net of interest expense, climbed 11% to $15.8 billion, driven by higher net interest income and increased card member spending. The Street’s view was for $15.79 billion. Shares of the company were up 3.4% in Friday trading. US consumer services revenue advanced 14% to $7.5 billion while international card services increased 8% to $2.71 billion. Commercial services grew 8% to $3.79 billion, while global merchant and network services gained 7% to $1.87 billion. “Bill business grew 7% versus last year in the first quarter on a (foreign-exchange)-adjusted basis, in line with the overall

The following is a summary of the American Express Company (AXP) Q1 2024 Earnings Call Transcript: Financial Performance: American Express Q1 revenues reached $15.8 billion, an 11% YoY increase, with EPS jumping by 39% to $3.33. The growth in revenue was primarily due to overall spending increase of 7%, with U.S. consumer card spending up 8%. Net interest income also experienced a 26% annual increase. The company’s fee revenues showed a robust growth, up 16% on an FX-adjusted basis while they also acquired 3.4 million new cards in Q1, the majority being fee-based products. American Express has maintained its full year guidance for 2024, with revenue growth projected at 9% to 11% and EPS between $12.65 and $13.15. Business Progress: Over 60% of new consumer account acquisitions globally were Millennial and Gen Z consumers. However, the SME billed business growth remained relatively flat. American express continues to innovate in the