Benzinga -
- American Express Co (NYSE: AXP) reported fourth-quarter revenue net of interest expense growth of 17% year-on-year to $14.18 billion, missing the consensus of $14.22 billion.
- Increased Card Member spending, and higher net interest income, reflecting higher average loan volumes, drove the growth.
- Total Network Volumes grew 12% Y/Y to $413.3 billion.
- U.S. Consumer Services revenue was $6.5 billion, up 23% Y/Y.
- Commercial Services revenue was $3.6 billion, up 15% Y/Y.
- International Card Services revenue was $2.4 billion, up 14% Y/Y.
- Global Merchant and Network Services revenue was $1.8 billion, up 20% Y/Y.
- Credit metrics remained strong in the current quarter and below pre-pandemic levels.
- EPS of $2.07 missed the consensus of $2.22.
- Dividend: American Express looked to increase the regular quarterly dividend by 15%, from $0.52 to $0.60 per share, beginning with the Q1 dividend declaration.
- FY23 Outlook: American Express expects revenue growth of 15% - 17% (consensus of $58.78 billion) and EPS of $11.00 - $11.40 (consensus of $10.52).
- Price Action: AXP shares traded higher by 5.14% at $163.90 in the premarket on the last check Friday.