American Express (AXP.US), US financial services company, reported Q1 2024 results today ahead of the Wall Street session open. Report turned out to be slightly better-than-expected, but the stock moved lower in premarket anyway.
Company's total revenue jumped 10.6% YoY to $15.80 billion. While this was slightly more than expected, it was also a further moderation in growth. Year-over-year revenue growth rate for Q1 2024 was the slowest since Q1 2021. However, growth in total expenses was slower, hinting at an improved efficiency. Company said that a strong jump in profit reflects continued business momentum and that an increase in provisions for loan losses resulted from higher net charge-offs.
However, while results for Q1 2024 beat expectations, this improvement in business was not big enough to trigger an outlook upgrade. Company still expects full-year revenue to grow 9-11% this year, while EPS is still expected to reach $12.65-13.15, which would mark an increase of 12.8-17.3% compared to 2023.
Q1 2024 earnings
- Revenue: $15.80 billion vs $15.77 billion expected (+10.6% YoY)
- Discount revenue: $8.38 billion vs $8.38 billion expected (+5.4% YoY)
- Provisions for credit losses: $1.27 billion vs $1.31 billion expected (+20.3% YoY)
- Total expenses: $11.39 billion vs $11.58 billion expected (+3% YoY)
- Card reward expenses: $3.77 billion vs $3.97 billion expected (+0.2% YoY)
- Network volume: $419.2 billion vs $419.3 billion expected (+5.1% YoY)
- Total card member loans: $126.6 billion (+16% YoY)
- Effective tax rate: 22.5% vs 23.5% expected (16.2% a year ago)
- Net income: $2.44 billion vs $2.19 billion expected (+34.2% YoY)
- EPS: $3.33 vs $2.96 expected ($2.40 a year ago)
Full-year 2024 forecasts
- Revenue growth: unchanged at 9-11%
- EPS: unchanged at $12.65-13.15 vs $12.83 expected
American Express beat expectations, but growth in net revenue continued to moderate in Q1 2024 and was the slowest since Q1 2021. Source: Bloomberg Finance LP, XTB Research
American Express (AXP.US) is trading a touch lower in premarket, following release of Q1 2024 report that beat expectations but did not include outlook upgrade. Stock has recently broken below the 50-session moving average (green) and has been struggling to climb back above it. Source: xStation5
Kongsberg Gruppen after earnings: The company catches up with the sector
Market wrap: European indices attempt a rebound after Wall Street’s record selloff 🔨
Morning wrap: Tech sector sell-off (06.02.2026)
Amazon shares tumble 10% as investors recoil at the price of AI dominance
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
