American Express Reports Q4 Results Mostly in Line With Estimates

American Express, the global financial services giant, has released its fourth-quarter results, with earnings and revenue largely in line with analysts' expectations. The company reported net income of $2.17 billion, or $3.04 per share, compared to $1.93 billion, or $2.62 per share, in the same period last year. Revenue net of interest expense came in at $17.18 billion, up from $15.80 billion in the prior year.

The company's strong performance was driven by several factors, including:

1. Stronger spending among its card members: American Express attributed the revenue increase to stronger spending by its card members during the holiday season. This is evident in the statement, "We exited the year with increased momentum, with billings growth accelerating to 8% in the fourth quarter, driven by stronger spending from our consumer and commercial customers during the holiday season" (Denny Jacob, American Express posted a surge in revenue in its fourth quarter).
2. Higher net interest income: American Express also benefited from higher net interest income, supported by growth in revolving loan balances. This is highlighted in the statement, "Higher net interest income supported by growth in revolving loan balances" (Denny Jacob, American Express posted a surge in revenue in its fourth quarter).
3. Accelerated card fee growth: The company experienced accelerated growth in card fees, which contributed to the overall revenue increase. This is mentioned in the statement, "Accelerated card fee growth" (Denny Jacob, American Express posted a surge in revenue in its fourth quarter).

American Express also provided guidance for fiscal year 2025, projecting revenue growth between 8% and 10% as well as earnings per-share in the range of $15 and $15.50. The company plans to increase its quarterly dividend by 17%, from $0.70 to $0.82 per share, beginning with the first quarter 2025 dividend declaration.

In conclusion, American Express' fourth-quarter results were mostly in line with analysts' estimates, driven by stronger spending among its card members, higher net interest income, and accelerated card fee growth. The company's guidance for fiscal year 2025 and dividend increase reflect its confidence in future earnings growth. Investors should monitor the company's performance and potential catalysts for further growth.