Amex shy of earnings in recent quarter
American Express Co. surpassed $50 billion in annual sales for the first time last year. This was underpinned by the continued spending levels of our customer base.
The cards giant missed its fourth-quarter profit forecast, but posted a positive earnings outlook for the full year ahead. The company also announced a 15% increase in its dividend.
American Express (AXP) posted fourth-quarter net income of $1.57 billion, or $2.07 per share, compared with $1.72 billion, or $2.18 per share, in the year-ago quarter. FactSet consensus was $2.23 per share.
While analysts were looking for $14.23 billion, earnings for the quarter after interest expense increased from $12.16 billion to $14.18 billion. Annual earnings he had $52.86 billion.
“Our results show that our strategy is working and our business is now in a stronger position than it was pre-pandemic,” said Steven Squerie, CEO. ) said in a release.
See also: Visa rides spending wave to beat profits
Total network volume for the quarter was $413.3 billion, up from $368.1 billion last year.
According to American Express, total loan loss reserves were $1.03 billion, compared with $53 million in the year-ago quarter. The increase reflects a reserve build-up of $462 million and higher net write-offs in the most recent period, compared with his $168 million net reserve release in the same period last year. increase.
Nonetheless, American Express said in a release that “credit metrics remain strong this quarter and remain below pre-pandemic levels.”
Read: Marqeta promotes Simon Khalaf from chief product officer to CEO
For the full year, the company expects revenue to grow 15% to 17% and earnings per share to be between $11.00 and $11.40, both above what analysts had modeled. FactSet’s consensus is $58.82 billion, which is about 11% above his 2022 level. Analysts had also expected EPS to be $10.53.
“Our performance to date and opportunities ahead allow us to meet our long-term growth plan goals of double-digit annual revenue growth and mid-teens EPS growth,” Squeri said in a release. increase.
Don’t Miss: Among ‘Very Resilient’ Spending, Mastercard Earnings Top Expectations
American Express plans to increase its quarterly dividend from 52 cents to 60 cents per share, an increase of just over 15%.
– Emily Barry
(Closed) Dow Jones Newswire
Copyright (c) 2023 Dow Jones & Company, Inc.