American Express (AXP) fell short of analysts' expectations in Q1 2024, with a notable decline in net income and earnings per share (EPS) compared to the previous quarter.
- Earnings Performance:
- AXP's net income for Q1 2024 was $2.17 billion1.
- This represents a significant quarter-over-quarter decline of 13.44%1.
- Earnings Per Share (EPS):
- The estimated EPS for Q1 2024 was $2.952.
- However, the actual EPS was not provided, making it difficult to determine the exact miss or surprise.
- Revenue and Segment Performance:
- Total revenues net of interest expense improved by 12% year-over-year to $2.7 billion, which missed the consensus mark of $2.8 billion3.
- The growth was attributed to expanding Card Member spending and rising card fee revenues, but it did not fully offset the higher costs.
- Analyst Ratings and Market Reaction:
- Analysts had a "Buy" consensus rating on AXP4.
- Despite the earnings miss, American Express stock has shown resilience with a rise on strong guidance and a dividend boost, indicating market confidence in the company's future prospects5.
In conclusion, while AXP's Q1 2024 earnings did not meet analysts' expectations, the company's strategic initiatives and market conditions may influence future performance and analyst ratings.
4/7/2025 05:27am
