Core Viewpoint - American Express (AXP) and Moody's (MCO) are both considered for investment, with AXP currently presenting a better value opportunity based on various financial metrics [1][3]. Valuation Metrics - AXP has a forward P/E ratio of 20.21, while MCO has a significantly higher forward P/E of 39.02 [2]. - AXP's PEG ratio is 1.47, indicating a more favorable valuation in relation to its expected earnings growth compared to MCO's PEG ratio of 3.07 [2]. - AXP's P/B ratio stands at 6.40, whereas MCO's P/B ratio is much higher at 20.80, suggesting AXP is more undervalued relative to its book value [2]. Value Grades - AXP has received a Value grade of B, indicating it is considered undervalued, while MCO has a Value grade of F, suggesting it is overvalued based on the analyzed metrics [3].

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has American Express (AXP) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.American Express is a member of the Finance sector. This group includes 871 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the indiv ...

American Express Company (AXP) reported third-quarter 2024 earnings per share (EPS) of $3.49, which beat the Zacks Consensus Estimate by 6.7%. The bottom line climbed 6% year over year.Total revenues net of interest expense amounted to $16.6 billion, which marginally missed the Zacks Consensus Estimate. However, the top line improved 8.2% year over year in the quarter under review.The strong third-quarter 2024 earnings benefited from rising net interest income, growth in the customer base of Millennials and ...

Financial Performance - Total revenues net of interest expense increased by 8% year-over-year to $16.636 billion for Q3 2024, and by 9% to $48.770 billion for the nine months ended September 30, 2024[13]. - Net income for Q3 2024 was $2.507 billion, or $3.49 per share, compared to $2.451 billion, or $3.30 per share in Q3 2023, reflecting a 2% increase in net income[14]. - Total revenues for the three months ended September 30, 2024, reached $16,636 million, an increase of 8.2% compared to $15,381 million in 2023[152]. - Net income for the three months ended September 30, 2024, was $2,507 million, up from $2,451 million in 2023, reflecting a growth of 2.3%[152]. - Basic earnings per share for the three months ended September 30, 2024, increased to $3.50, compared to $3.30 in 2023, representing a rise of 6.1%[152]. - Net income for the nine months ended September 30, 2024, was $7,959 million, up from $6,441 million in the same period of 2023, reflecting a year-over-year increase of 23.6%[161]. Revenue and Expenses - Non-interest revenues increased by 7% to $5,028 million for the three months ended September 2024, and by 8% to $14,823 million for the nine months ended September 2024 compared to the same periods in 2023[46]. - Total expenses rose by 12% to $5,473 million for the three months and by 9% to $16,098 million for the nine months, mainly driven by higher Card Member rewards and marketing expenses[46][52]. - Total expenses for the nine months ended September 30, 2024, were $34,738 million, an increase of 4.5% from $33,229 million in 2023[154]. Credit and Loans - Provisions for credit losses rose by 10% year-over-year to $1.356 billion, primarily due to higher net write-offs[13]. - Total loans and Card Member receivables increased by 10% year-over-year, indicating continued growth in lending[17]. - Card Member loans reached $134,548 million, reflecting a 14% increase compared to $117,978 million in the previous year[40]. - The net write-off rate for principal, interest, and fees was 2.2% for the three months ended September 30, 2024, compared to 2.0% in the previous year[40]. - Total provisions for credit losses rose by 10% to $1,356 million for the three months and by 12% to $3,893 million for the nine months[27]. Shareholder Returns - The company returned $2.4 billion to shareholders through share repurchases and dividends during the quarter[19]. - The company repurchased 7.7 million common shares at an average price of $245.30 during Q3 2024[100]. - Cash dividends declared for common shares were $439 million, with a dividend of $0.60 per share[167]. Customer Metrics - Billed business grew by 6% year-over-year, with U.S. Consumer Services and International Card Services showing strong growth of 6% and 13% respectively[15]. - Average proprietary basic Card Member spending increased by 2% to $6,110 for the three months and by 2% to $18,224 for the nine months[37]. - The average fee per card increased by 13% to $105 for the three months and by 11% to $101 for the nine months[37]. Regulatory and Compliance - The company is now classified as a Category III firm under U.S. federal bank regulatory agencies, subjecting it to heightened capital and liquidity requirements[129]. - The company is required to submit its initial resolution plan under new FDIC rules by July 1, 2026, with an interim supplement due by July 1, 2025[130]. - The company is cooperating with ongoing governmental investigations related to historical sales practices and compliance with consumer protection laws[129]. Market and Economic Conditions - The company’s financial performance may be impacted by macroeconomic conditions, including recession risks and inflation[144]. - Future revenue growth will depend on effective management of operating expenses and risk, as well as successful execution of the share repurchase program[144]. - The company anticipates challenges in growing revenues net of interest expense due to competitive pressures and changes in spending volumes[144]. Capital and Liquidity - The company maintained its Common Equity Tier 1 (CET1) capital ratio at 10.7%, within its target range[19]. - As of September 30, 2024, customer deposits increased to $135.4 billion from $129.1 billion as of December 31, 2023, representing a growth of 2.3%[105]. - The company issued $12.1 billion of debt in the nine months ended September 30, 2024, including $8.9 billion of unsecured debt and $3.2 billion of asset-backed securities[106].

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 ...