American Express (AXP) shares moved lower in premarket trading Friday after the financial services firm reported fiscal 2024 fourth-quarter results mostly in line with analysts' expectations.
The credit card giant reported quarterly net income of $2.17 billion, or $3.04 per share, on revenue of $17.18 billion. Analysts polled by Visible Alpha had expected profit of $2.17 billion, or $3.05 per share, on revenue of $17.17 billion.
American Express also posted net interest income of $4.04 billion, just below the $4.09 billion analysts had expected.
"We ... saw record levels of annual Card Member spending, record net card fee revenues, and a record 13 million new card acquisitions, and we continued to add millions of merchant locations to our network globally," CEO Stephen Squeri said, noting the company saw "stronger spending from our consumer and commercial customers during the holiday season."
American Express projects 2025 revenue growth of 8% to 10% and earnings per share (EPS) of $15.00 to $15.50, while analysts expect revenue growth of 8.2% and EPS of $15.26. The company also said it expects to increase its quarterly dividend to 82 cents per share, up from 70 cents per share previously.
Friday's report follows a stretch of strong bank earnings that saw the largest financial firms post substantial Q4 revenue and profit gains thanks to a resurgence in Wall Street dealmaking.
American Express shares were down 2.5% to $318 soon after the report's release. They set a record close at $325.87 on Thursday and have risen about 75% over the last 12 months.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.