American Express

American Express: ‘Credit Metrics Remained Strong During the Year, With Net Write-off and Delinquency Rates for Total Card Member Loans and Receivables Below Pre-pandemic Levels’.

By Charley Grant The economy might be cooling, but wealthy U.S. consumers and businesses are still spending on travel. That’s one takeaway from Friday morning’s earnings report from American Express. The credit card giant said that cardholder spending on travel and entertainment rose 9% from a year earlier. That figure is down from 13% in the third quarter–and 34% in the fourth quarter of 2022, when growth surged relative to pandemic-era spending. Still, the category grew more quickly than overall spending, which rose 6% from a year earlier.

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 $65 to $270, applying a forward P/E of 18.8x our 2025 earnings estimate, a wider risk premium than the peer average of 7.1x given more consistent earnings performance, lower credit risk, and superior growth prospects. We raise our 2024 EPS estimate by $0.24 to $12.98 and start 2025’s at $14.40. AXP reported Q4 EPS of $2.62 vs. $2.07 a year ago, a $0.03 earnings miss. Although some may fixate on slowing spending trends (discount revenue +5% Y/Y vs. 7% in Q3), we believe this quarter highlighted AXP’s diversified business model, which can outperform in a variety of scenarios. Leading the charge this quarter was net interest income, which surged 31% higher on 13% loan growth. Additionally, net card fees (+17%)

By Emily Bary American Express write-off rate ticked higher in latest quarter but remained below what competitors posted American Express Co. saw net write-offs increase slightly in the latest quarter relative to a year before, but the company on Friday still came in ahead of Wall Street expectations with its financial forecasts for 2024. Shares were rocketing 8.7% in morning trading Friday and on pace for their largest single-day percentage gain since they rose 10.5% after the company’s fourth-quarter report a year ago. The stock, which recently changed hands at $204.07, is also tracking toward a new all-time high. That would mark its first record close since Feb. 16, 2022, when it finished at $198.38, according to Dow Jones Market Data. Total revenue net of interest expense came in at $15.8 billion, up 11% from the $14.2 billion that Amex (AXP) reported a year prior. Analysts had been looking for

American Express (AXP) shares rose more than 7% in recent Friday trading after the company reported Q4 earnings of $2.62 per diluted share, up from $2.07 a year earlier. Analysts surveyed by Capital IQ expected $2.63. Revenue for the quarter ended Dec. 31 was $15.8 billion, up from $14.18 billion a year earlier. Analysts polled by Capital IQ expected $15.95 billion. The company said it expects full-year 2024 earnings of $12.65 to $13.15 per share, with revenue growth of 9% to 11%. Analysts surveyed by Capital IQ expect EPS of $12.32 on revenue of $66.21 billion. Price: 201.74, Change: +13.67, Percent Change: +7.27

The following is a summary of the American Express Company (AXP) Q4 2023 Earnings Call Transcript: Financial Performance: American Express reported a record annual revenue of $61 billion in 2023, marking a 15% increase on an FX adjusted basis. The company achieved a record net income of over $8 billion with an EPS of $11.21. The Q4 2023 results saw revenues reaching nearly $16 billion and an EPS of $2.62. Projected annual revenue growth for 2024 is between 9% and 11% with a full-year EPS expected to be between $12.65 and $13.15. The quarterly dividend will increase from $0.60 to $0.70 a share starting Q1 2024. Full-year revenues stood at $60.5 billion, up 15% on an FX adjusted basis. Fourth quarter revenues were at $15.8 billion, reflecting an 11% YoY increase. The company returned $5.3 billion of capital to shareholders in 2023 and plans to continue investing in the balance

We increase our 12-month target price by $25 to $235, applying a forward P/E of 18.3x our 2024 earnings estimate, a wider risk premium than the peer average of 7.3x given more consistent earnings performance, lower credit risk, and superior growth prospects. We raise our 2023 EPS estimate by $0.11 to $11.30 and decrease 2024’s by $0.15 to $12.87. AXP reported Q2 EPS of $2.89 vs. $2.57, a $0.07 earnings beat. Revenue growth slowed to 12% Y/Y as benefits from pandemic comps have been fully realized. However, we were still impressed with AXP’s resilience as a slowdown in discount revenue (+8% Y/Y) was met with exceptional growth in net card fees (+21%). Additionally, net interest income surged 32% as results benefited from strong loan growth and net interest yield expansion. Looking forward, we expect net interest income momentum to continue given strong loan growth, and we don’t expect credit quality

American Express Co. (NYSE:AXP) reported Q2 earnings of $2.89 per diluted share, up from $2.57 a year earlier. Analysts polled by Capital IQ expected $2.81. Revenue net of interest expense for the quarter ended June 30 was $15.05 billion, up from $13.40 billion a year earlier. Analysts surveyed by Capital IQ expected $15.36 billion. For fiscal 2023, American Express Co. said it continues to expect earnings of $11 to $11.40 per share and revenue growth of 15% to 17%. Analysts polled by Capital IQ expect earnings of $11 per share.

American Express (NYSE:AXP) Reaffirms FY23 Outlook: EPS $11.00 – $11.40 Vs. $11.04 Estimate, Revenue Growth of 15%-17% Vs. $$61.23B Estimate.