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American Express Reports Strong Q3 Earnings, Raises Guidance; Shares Up 2%

Oct 18, 2024, 11:25 AM

American Express (AXP) reported third-quarter earnings that exceeded analysts' expectations, driven by robust customer spending, particularly among affluent customers and US millennials. The company posted a net income of $2.51 billion, or $3.49 per share, surpassing the forecasted EPS of $3.38. Total revenues for the quarter were $16.6 billion, up 8% from $15.4 billion a year ago, though slightly below the forecast of $16.68 billion. Consolidated provisions for credit losses increased to $1.4 billion from $1.2 billion in the previous year. Despite a rise in delinquencies, the company's bet on millennial spending continues to pay off, with millennial spending up 12% year-over-year. American Express has also raised its full-year guidance, reflecting continued strong performance and consumer reliance on rewards-rich credit cards. Shares of American Express rose 2% premarket following the earnings announcement. Card fee revenue increased by 18%, and 3.3 million new cards were acquired.