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American Express down despite beating Q1 estimates on top and bottom lines

Published 19/04/2024, 09:44 pm
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Shares of American Express (NYSE:AXP) slid 1% in premarket trading Friday following the company’s latest earnings report for the fiscal Q1 2024.

The bank posted Q1 earnings per share (EPS) of $3.33, topping the consensus estimates of $2.95.

Revenue came in at $15.8 billion, slightly above the consensus forecast of $15.79 billion.

Card member spending increased by 7% on a foreign exchange-adjusted basis, the company said.

Looking ahead, American Express reaffirmed its full-year guidance.

Specifically, it continues to project an EPS in the range of $12.65 to $13.15, aligning closely with the average analyst estimate of $12.83.

Revenue growth is expected to be between 9% and 11% for the year.

“We have started 2024 off strong, with our first-quarter results reflecting the positive trends we have seen in our business the last several years,” said Stephen J. Squeri, Chairman and Chief Executive Officer of American Express.

“Our fee-based products accounted for around 70 percent of the new account acquisitions we saw in the quarter, and we continue to see strong demand from Millennial and Gen Z consumers, who accounted for over 60 percent of new consumer account acquisitions globally,” they added.

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