American Express Co. exceeded $50 billion in annual revenue for the first time last year, thanks to the consistently strong spending of its customer base.
While the card giant fell short of profit expectations in the fourth quarter, it delivered an upbeat earnings outlook for the whole of next year. The company also announced that it will increase its dividend to 15%.
American Express
AXP,
recorded fourth-quarter net income of $1.57 billion, or $2.07 a share, compared with $1.72 billion, or $2.18 a share, in the quarter. prior to. FactSet consensus is $2.23 per share.
Quarterly revenue after interest expenses rose to $14.18 billion from $12.16 billion, while analysts were looking for $14.23 billion. Annual revenue reached 52.86 billion USD.
“Our performance demonstrates that our strategy is working and that our business is in an even stronger position today than before,” CEO Stephen Squeri said in a statement. epidemic.
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Total network volume was $413.3 billion in the quarter, up from $368.1 billion a year ago.
American Express noted that total provision for credit losses was $1.03 billion, compared with $53 million a year earlier. This increase reflects $462 million worth of reserve building, compared with a net reserve issuance of $168 million a year earlier, along with higher net write-offs in the most recent period.
However, American Express said in its release that “credit metrics remain strong in the current quarter and below pre-pandemic levels.”
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For the full year, the company is expected to grow revenue by 15% to 17% and earnings per share of $11.00 to $11.40, both of which are well above what analysts are seeing. modeling. FactSet consensus is $58.82 billion, about 11% higher than 2022 levels. Analysts also expect EPS of $10.53.
“Our performance to date and the opportunities ahead help us deliver on the aspirations of our long-term growth plan for double-digit year-over-year revenue and growth,” said Squeri. EPS for middle-aged teenagers”.
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American Express plans to increase its quarterly dividend to 60 cents a share from 52 cents a share, marking an increase of just over 15%.
