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Mar 31, 2023
American Express Q1 2023 Earnings Report
American Express reported strong first-quarter results with revenue increase driven by card member spending and reaffirmed full-year guidance.
Key Takeaways
American Express reported first-quarter net income of $1.8 billion, or $2.40 per share. Revenue grew 22% year-over-year to $14.3 billion, driven by strong card member spending. The company reaffirmed its full-year 2023 revenue and EPS guidance.
Revenue grew 22% year-over-year to reach a quarterly record, driven by increased Card Member spending.
Travel and Entertainment spending was particularly robust, growing 39% on an FX-adjusted basis.
Acquired 3.4 million new cards during the quarter, with strong demand from Millennial and Gen Z consumers.
Company reaffirmed full-year 2023 revenue and EPS guidance.
Forward Guidance
Company reaffirms full-year 2023 revenue and EPS guidance, expecting revenue growth of 15% to 17% and earnings per share of $11.00 to $11.40.
Positive Outlook
- Confident in ability to achieve longer-term growth plan aspirations.
- Strong growth in Card Member spending.
- High engagement with premium products.
- Continued momentum in the business.
- Customers have been resilient thus far.
Challenges Ahead
- Mindful of the mixed signals in the external environment.
- Slower macroeconomic growth.
- Elevated inflation.
- Higher interest rates.
- Loss on Amex Ventures investments of $95 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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