American Express beats by $0.20, reports revs in-line; raises FY24 EPS guidance (285.78)
- Reports Q3 (Sep) earnings of $3.49 per share, $0.20 better than the FactSet Consensus of $3.29; revenues rose 8.2% year/year to $16.64 bln vs the $16.68 bln FactSet Consensus.
- Consolidated provisions for credit losses were $1.4 billion, compared with $1.2 billion a year ago. The increase reflected higher net write-offs driven by growth in loan balances, partially offset by a lower net reserve build year-over-year. The third-quarter net write-off rate was 1.9 percent, compared to 1.8 percent a year ago, and down from 2.1 percent in the prior quarter.
- In the third quarter, total Card Member spending increased 6 percent, and card fee revenue growth accelerated to 18 percent. We continued to attract large numbers of new premium Card Members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline.
- Co issues upside guidance for FY24, sees EPS of $13.75-$14.05, excluding non-recurring items, up from prior guidance of $13.30-$13.80, vs. $13.62 FactSet Consensus. Continues to expect full-year revenue growth that is within the annual guidance range we provided in the beginning of the year, at around 9 percent.