The American Express Company (AXP) has projected its Earnings Per Share (EPS) to lie between $12.65 and $13.15 for the year 2024, signaling a growth increase of 13% - 17%. Its revenue growth is also anticipated to range from 9% to 11%. In the long run, the company forecasts an EPS growth in the mid-teens and a revenue growth exceeding 10%.
The fourth-quarter net income was pegged at $1.93 billion, which is a 23% increase from the previous year. The Earnings Per Share was $2.62, marking an increase of 27%. The average estimation from analysts predicted the company to have an earnings per share of $2.64 based on data compiled by Thomson Reuters, typically excluding special items.
The total revenues for the fourth quarter, excluding interest expense, was $15.80 billion. This indicates an 11% increase from the previous year. Analysts had estimated the revenue to be $16 billion on average. The company stated this increase was majorly driven by higher net interest income and an uptick in Card Member spending. The provisions for credit losses stood at $1.4 billion, in comparison to $1 billion in the previous year.
The CEO of American Express, Stephen Squeri, acknowledged: "We added 12.2 million new proprietary cards in the past year, bringing the total number of cards-in-force issued on our global network to over 140 million."
Shares of the American Express are witnessing a 3% rise in the pre-market trade on Friday.
