American Express (NYSE:AXP) exceeded third-quarter earnings forecasts while revenue came in slightly below expectations, and raised its full-year earnings guidance. The financial giant highlighted strong performance in its core business as a key driver of growth.
For the third quarter, American Express reported an EPS of $3.49, surpassing the consensus estimate of $3.38. Revenue for the period reached $16.64 billion, just shy of the projected $16.68 billion but still marking an 8% year-over-year increase.
Building on this momentum, the company raised its full-year 2024 EPS guidance to a range of $13.75 to $14.05, up from the previous forecast of $13.30 to $13.80. Revenue growth is expected to remain in line with its original target of around 9% for the year.
The quarter saw a 6% increase in total Card Member spending and an 18% rise in card fee revenue, reflecting the continued strength of American Express’s premium card offerings. The company added 3.3 million new premium Card Members during the quarter, maintaining high retention rates and excellent credit performance.
American Express also reported a net write-off rate of 1.9%, a slight improvement from the previous quarter’s 2.1%, though slightly higher than the 1.8% rate seen a year ago.