Core Viewpoint - American Express Company (AXP) reported strong fourth-quarter 2024 earnings, with earnings per share (EPS) of 3.04,a1617.2 billion, an 8.7% year-over-year improvement, both exceeding consensus estimates [1][2]. Financial Performance - The fourth-quarter earnings were driven by record high card member spending and fee growth, alongside new card acquisitions, particularly among Millennials and Gen-Z [3]. - Network volumes reached 464billion,a7458.7 billion [4]. - Total interest income was 6.1billion,a96.2 billion [4]. - Provision for credit losses decreased by 10% year over year to 1.3billion[4].−Totalexpensesroseby1113.1 billion, primarily due to increased customer engagement and marketing costs [5]. Segment Performance - The U.S. Consumer Services segment reported pre-tax income of 1.5billion,a58.3 billion, up 12% year over year [6]. - The Commercial Services segment's pre-tax income was 814million,a224.1 billion, growing 8% year over year [7]. - The International Card Services segment saw a significant decline in pre-tax income to 34million,down762.99 billion [8]. - The Global Merchant and Network Services segment reported pre-tax net income of 853million,a41.9 billion [9]. Balance Sheet and Capital Deployment - As of December 31, 2024, cash and cash equivalents were 40.6billion,downfrom46.6 billion at the end of 2023, while total assets increased to 271.5billion[10].−Long−termdebtroseto49.7 billion, and shareholders' equity improved by 8% year over year to 30.3billion[10][11].−Thecompanyrepurchased3millioncommonsharesinthefourthquarterandplanstoincreaseitsdividendto82centspersharestartinginthefirstquarterof2025[12].FutureOutlook−For2025,AXPanticipatesrevenuegrowthbetween865.9 billion, with EPS expected in the range of 15−15.5, indicating an 8.9% improvement from 2023 [13]. - The company projects long-term revenue growth of over 10% and mid-teens growth in EPS [14].
American Express(AXP) ZACKS·2025-01-24 19:46