For American Express, as has been a longstanding trend, it's the younger consumers, cards in hand, who are boosting results. And, as Amex management noted on a Friday (Oct. 18) conference call with analysts, dining out is a prime example of where millennial and Gen Z consumers choose to wield those cards in full force. The company's earnings supplementals showed that consumer billed business — the metric that represents cardmember spending tied to transactions and card advances — was up 6% year over year (o ...

Financial Data and Key Metrics - Q3 2024 EPS was $3.49, with revenues reaching $16.6 billion, up 8% YoY, marking the 10th consecutive quarter of record revenues [7] - Full-year EPS guidance raised to $13.75-$14.05, up from $13.30-$13.80, with expected revenue growth of around 9% [7] - Net card fees increased by 18% YoY, driven by product refreshes and strong demand for premium products [24] - Total loans and card member receivables grew by 10% YoY, with loan growth at 15% in Q3 [21] - Delinquency rates remained low, and write-off rates declined to 1.9% in Q3 [22] Business Line Performance - US Consumer Gold Card acquisitions are running 30% higher than Platinum, with 80% of new Gold Card members coming from Millennials and Gen-Z [9] - Dining-related spending in the US Consumer business grew 7% YoY, nearly twice the industry rate since 2019 [11] - International Card Services saw spend growth of 13%, with Japan up 17% and Mexico up 15% on an FX-adjusted basis [20] - Commercial Services spend growth was modest, consistent with previous quarters [20] Market Performance - US Consumer spending remained stable, with Millennial and Gen-Z customers driving 12% growth [19] - International markets showed strong performance, with all top five markets growing in double digits [20] - High-yield savings balances grew by 19% YoY, with over 75% of balances coming from existing card members [28] Strategy and Industry Competition - The company's product refresh strategy has resulted in 40 refreshed products globally in 2024, with more expected by year-end [8] - Dining is a key focus, with investments in Resy and Tock to enhance dining capabilities and differentiate Amex membership [11][12] - The company's premium customer base and strong merchant relationships position it well to compete in the dining space [14] Management Commentary on Business Environment and Outlook - Management remains confident in long-term growth prospects, citing the sustainability of the product refresh strategy and strong customer engagement [7][8] - The company expects continued growth in card fees and lending, driven by premium products and customer retention [17][21] - Despite a softer spending environment, the company is focused on delivering mid-teens EPS growth [34][37] Other Important Information - Marketing expenses were $1.5 billion in Q3, with full-year marketing spend expected to be around $6 billion [27] - Operating expenses were $3.8 billion, up 5% YoY, with a slight uptick expected in Q4 [27] - The company returned $2.4 billion in capital to shareholders, including $1.9 billion in share repurchases [28] Q&A Session Summary Question: Revenue Growth and Billings Acceleration [32] - Management emphasized the need for billings acceleration to achieve 10% revenue growth, with card fees and NII contributing to growth [33][34] Question: EPS Growth in a Slower Revenue Environment [36] - The company expects mid-teens EPS growth even with 6% billings growth, driven by strong customer acquisition and product refreshes [37][39] Question: Business Development Spend and Weather Impact [41] - Business development spend was lower due to reduced incentives tied to billing levels, with no weather impact on guidance [42][43] Question: Marketing Investments and Returns [45] - The company is ramping up marketing investments, with no signs of diminishing returns, and expects to increase investments in 2025 [46][47] Question: Customer Acquisition and Product Refresh Cycle [50] - The company has surpassed its goal of refreshing 40 products in 2024 and expects continued growth in customer acquisition [51][52] Question: Affluent US Consumer Sustainability [57] - The affluent US consumer base remains stable, with no signs of stress, and international consumer spending grew 13% YoY [58][59] Question: Revenue Growth and Discount Revenue Trends [61] - Revenue growth is expected to remain stable, with Q3 trends continuing into Q4, and discount revenue growth impacted by international markets [62][63] Question: Lifetime Value and Spend by Card Category [65] - Customers moving from Green to Gold to Platinum cards show higher lifetime value, with Platinum cardholders spending more on travel and lifestyle benefits [66][67] Question: Net Interest Income Dynamics [69] - NII growth is expected to moderate, with minimal impact from Fed rate changes, and a focus on high-yield savings accounts for funding [70][71][72] Question: Card Acquisitions and Product Refresh Adoption [74] - Card acquisitions are in line with expectations, with product refreshes driving demand and engagement [75][76] Question: Fed Easing Impact on Bill Business Growth [78] - Fed easing is expected to support consumer and small business confidence, potentially boosting organic spending [79][80] Question: T&E Spend and Restaurant Investments [82] - Restaurant spending remains a strong category, with investments in Resy and Tock expected to drive further growth, while airline spending remains robust [83][84][85]

American Express (AXP) reported $16.64 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 8.2%. EPS of $3.49 for the same period compares to $3.30 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $16.64 billion, representing a surprise of -0.03%. The company delivered an EPS surprise of +6.73%, with the consensus EPS estimate being $3.27.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

American Express (AXP) came out with quarterly earnings of $3.49 per share, beating the Zacks Consensus Estimate of $3.27 per share. This compares to earnings of $3.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.73%. A quarter ago, it was expected that this credit card issuer and global payments company would post earnings of $3.22 per share when it actually produced earnings of $3.49, delivering a surprise of 8.39%.Over ...

| --- | --- | --- | |----------------------------|-------|-------| | | | | | American Express | | | | Earnings Conference Q3'24 | Call | | | | | | | OCTOBER 18, 2024 | | | Summary Financial Performance ($ in millions; except per share amounts) | --- | --- | --- | --- | --- | |----------------------------------------|---------|---------|-----------------|---------------------| | | Q3'24 | Q3'23 | YoY% Inc/(Dec) | YTD YoY% Inc/(Dec) | | Total Revenues Net of Interest Expense | $16,636 | $15,381 | 8% | 9% | | ...

EXHIBIT 99.2 American Express Company (Preliminary) Consolidated Statements of Income (Millions, except percentages and per share amounts) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------|------------|-------|----------------|------------|------------------|--------------|--------------|----------------|--------------|-------|----------------|----------------| | Non-interest revenues | Q3'24 | | Q2'24 | Q1 ...

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American Express Company (AXP) is set to report third-quarter 2024 results on Oct. 18, 2024, before the opening bell. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $3.27 per share, implying a decline of 0.9% from the year-ago reported number. However, the Zacks Consensus Estimate for third-quarter revenues is currently pegged at almost $16.7 billion, suggesting an 8.2% uptick from the year-ago actuals.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.T ...

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