- American Express has increased its full-year EPS (Earnings Per Share) forecast to $13.75 – $14.05 from its previous estimate of $13.30 – $13.80.
- For the third quarter, the adjusted EPS was $3.49, surpassing the estimated $3.29 and last year’s $3.30.
- Revenue for the third quarter reached $16.64 billion, growing by 8.2% year-over-year, slightly below the estimate of $16.67 billion.
- The provision for credit losses was calculated at $1.4 billion.
- The company reported a billed business volume of $387.3 billion, a 5.8% increase year-over-year, outperforming the estimated $386.91 billion.
- The effective tax rate was noted at 21.8%, lower than the estimated 22.5%.
- Based on its current performance and strong core business earnings, American Express raised its full-year EPS guidance.
- The company expects full-year revenue growth to be in line with the roughly 9% growth previously guided at the start of the year.
- Total card member spending increased by 6% during the third quarter, with card fee revenue rising by 18%.
- American Express attracted 3.3 million new premium Card Members during the third quarter.
- Millennial and Gen-Z consumers accounted for 80% of new accounts acquired for the US Consumer Gold Card.
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A look at American Express Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, American Express Co seems to have a positive long-term outlook. With solid scores in Growth, Resilience, and Momentum, the company appears to be positioned well for future success. The high Momentum score suggests that American Express is currently on a strong upward trend, which could bode well for its future performance. Additionally, the strong scores in Growth and Resilience indicate that the company has the potential for both expansion and the ability to withstand economic challenges.
American Express Company, a global payment and travel company, offers charge and credit payment card products and travel-related services to consumers and businesses worldwide. With its overall positive Smart Scores, particularly in Growth, Resilience, and Momentum, American Express Co may continue to be a solid player in the payment industry, catering to a diverse customer base both domestically and internationally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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