American Express (AXP) Shares Sink Further 3% this Friday after the company reported its third quarter results, in which reduced its full-year revenue outlook (predicting 9% growth in 2024, within the range of 9% to 11%), which affected market sentiment.
Despite reporting third quarter revenues in line with analyst consensus and raising earnings projections for the full year, AXP shares did not stop falling throughout the day, reaching a daily loss of up to 5%.
The higher revenue seen on a year-over-year basis was attributed to growth in loan volumes, higher net interest income, stable customer spending and accelerated fee growth.
The company closed the third quarter of 2024 with a Attributed net profit of 2,474 million dollarswhich is equivalent to an advance of 2.3% compared to the result obtained in the same period of the previous year.
The total net interest income rose to 16,636 million dollars, 8.2% morewhich includes a 16.4% increase in net interest, up to 4,006 million dollars. Income from items other than interest reached 12.63 billion dollars5.8% more.
Nevertheless, American Express raised provisions for credit default risk in the third quarter to 1,356 million dollars, 10% more.
Already in the accumulated for the first nine monthsthe company recorded profits of 7,856 million dollars (7,234 million euros), 23.8% above the result recorded until September of last year.
The American Express revenue figure was 37,265 million dollars, 5.9% more, while the provisions for credit risk They increased by 11.7%, to 3,893 million dollars.
“Based on our results to date […] raise our full-year earnings per share guidance to $13.75-$14.05 compared to the previous $13.30-$13.80,” explained the president and CEO of American Express, Stephen Squeriwhich called the quarterly performance “solid.”
Furthermore, the manager has refined the revenue estimates for 2024 and now he predicts that these grow 9% in 2024, within the range of 9% to 11% already reported.
American Express added 3.3 million new card users in the quarter and said it saw a big increase in premium credit card customers. Loans to card members rose from $118 billion a year ago to $134.5 billion in the recent quarter.
Source: Ambito
