American Express’s EPS of $3.49 exceeded the Zacks Consensus Estimate, marking a 6% increase year-over-year.
The company reported revenue of $16.64 billion, achieving an 8% growth from the previous year despite a slight miss against estimates.
Net income rose by 2% to $2.51 billion, with an updated full-year EPS guidance indicating confidence in continued growth.
American Express (NYSE:AXP) is a leading global financial services company known for its credit card, charge card, and travel-related services. It operates in the Zacks Financial – Miscellaneous Services industry, competing with other financial giants like Visa and Mastercard. On October 18, 2024, American Express reported earnings per share (EPS) of $3.49, surpassing the estimated $3.29.
The company’s EPS of $3.49 not only exceeded the Zacks Consensus Estimate of $3.27 but also marked a 6% increase from the $3.30 reported in the same quarter last year. This resulted in an earnings surprise of 6.73%. Over the past four quarters, American Express has exceeded consensus EPS estimates three times, showcasing its consistent performance.
Despite a slight revenue miss, with $16.64 billion reported against the estimated $16.68 billion, American Express achieved an 8% increase from the $15.38 billion reported a year ago. This growth reflects the company’s ability to drive revenue, even as it only topped consensus revenue estimates once in recent quarters.
American Express’s net income rose by 2% to $2.51 billion, compared to $2.45 billion in the third quarter of 2023. The company raised its full-year EPS guidance to a range of $13.75 to $14.05, up from the previous $13.30 to $13.80, and continues to project a revenue growth of approximately 9% from the previous year.
The company’s financial metrics, such as a price-to-earnings (P/E) ratio of 19.81 and a price-to-sales ratio of 2.87, indicate a strong market valuation. However, with a debt-to-equity ratio of 1.80 and a current ratio of 0.35, American Express faces challenges in terms of leverage and short-term liquidity. Despite these challenges, CEO Stephen Squeri remains confident in the company’s strategy and growth potential.
