American Express Company ( (AXP) ) has released its Q4 earnings. Here is a breakdown of the information American Express Company presented to its investors.
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American Express Company is a globally integrated payments company that provides a range of products and services designed to enhance the lives and businesses of its customers. With a focus on premium value propositions, American Express operates within the financial services sector, renowned for its strong brand and widespread merchant network.
The company’s 2024 earnings report highlights another robust year, with record revenues of $65.9 billion, a 10% increase on an FX-adjusted basis. Net income reached $10.1 billion, while earnings per share (EPS) climbed 25% to $14.01. The year saw significant consumer and commercial spending, contributing to record card fee revenues and new card acquisitions.
Key financial metrics include a total revenue increase of 10% on an FX-adjusted basis, driven by higher net interest income and card member spending. The company’s net income rose by 21% compared to the previous year, supported by strong billings growth and disciplined expense management. American Express also reported a decrease in credit loss provisions in the fourth quarter, reflecting a lower net reserve build.
Looking forward, American Express anticipates a revenue growth rate of 8% to 10% in 2025, with expected EPS ranging from $15.00 to $15.50. The company plans a 17% increase in its quarterly common stock dividend, signaling confidence in sustaining its growth momentum, particularly among younger demographics and international markets.
