In This Article:
On Friday, American Express Co (NYSE:AXP) reported fourth-quarter revenue (net of interest expense) growth of 9% year-on-year to $17.18 billion, topping the analyst consensus estimate of $17.16 billion.
The increase was primarily driven by strong Card Member spending, higher net interest income supported by growth in revolving loan balances, and accelerated card fee growth.
GAAP EPS of $3.04 was in line with the analyst consensus estimate.
Also Read: Ericsson Q4 Earnings: Sales Climb 1%, North America Shines, Dividend Raise, Guidance And More
Card Member spending or Billed Business grew 8% Y/Y to $408.4 billion. U.S. Consumer Services revenue was $8.25 billion, up 12% Y/Y. Commercial Services revenue was $4.12 billion, up 8% Y/Y.
International Card Services revenue was $2.99 billion, up 11% year over year, and Global Merchant and Network Services revenue was $1.89 billion, down 2% year over year.
Total expenses increased by 11% year over year to $13.1 billion, primarily reflecting higher variable customer engagement costs and marketing investments.
Provision for credit losses stood at $1.3 billion, compared with $1.4 billion a year ago, reflecting lower net reserve build.
Dividend: American Express plans to increase the regular quarterly dividend by 17% to $0.82 per share, beginning with the first quarter of 2025.
Chair and CEO Stephen J. Squeri flagged record levels of annual Card Member spending, record net card fee revenues, and a record 13 million new card acquisitions in 2024 and continued to add millions of merchant locations to its network globally.
FY25 Outlook: Amex expects revenue of $71.22 billion-$72.54 billion (up by 8%-10% Y/Y) versus a consensus of $71.28 billion. It expects EPS of $15.00–$15.50 versus the consensus of $15.23.
Price Action: AXP stock is up 0.11% at $326.24 premarket at the last check on Friday.
Also Read:
Photo by DreamerAchieverNoraTarvus via Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article American Express Q4 Earnings: Revenue Beat, Record Spending and Card Acquisitions, 17% Dividend Hike And More originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.