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Jun 30, 2024
American Express Q2 2024 Earnings Report
American Express reported strong Q2 2024 results with record revenue and significant EPS growth.
Key Takeaways
American Express reported strong second-quarter results, with revenue reaching an all-time high of $16.3 billion, up 8 percent, and EPS increasing 44% to $4.15, or 21% to $3.49 excluding a transaction gain.
Revenue reached an all-time high of $16.3 billion, up 8% (9% FX-adjusted).
EPS increased 44% to $4.15, or 21% to $3.49 excluding a transaction gain.
New card acquisitions totaled 3.3 million.
Card fee revenues experienced double-digit growth for the 24th consecutive quarter.
American Express
American Express
Forward Guidance
American Express raised its full-year EPS guidance to $13.30 - $13.80 and continues to expect revenue growth in line with the guidance range of 9 percent to 11 percent.
Positive Outlook
- Strong performance of core business
- Increase marketing investments by around 15 percent over last year without using any of the transaction gain
- Scale of business has significantly grown since the end of 2021
- Premium, high credit quality customers
- Well-controlled expense base
Challenges Ahead
- Macroeconomic conditions, such as recession risks, higher rates of unemployment, changes in interest rates, effects of inflation, supply chain issues, energy costs and fiscal and monetary policies
- Geopolitical instability, including the ongoing Ukraine and Israel wars, broader regional hostilities and tensions involving China and the U.S.
- Impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves
- Issues impacting brand perceptions and the company’s reputation
- Impacts related to sales and acquisitions, including management’s decisions regarding the use of the gain from the sale of Accertify, and new or renegotiated cobrand and other partner agreements and joint ventures