- American Express projects 2025 revenue growth of 8% to 10%.
- Expected earnings per share (EPS) for 2025 are between $15 and $15.50, slightly above analysts’ estimates of $15.24.
- For the fourth quarter, American Express reported EPS of $3.04, matching estimates and up from $2.62 year-on-year.
- Revenue for the fourth quarter reached $17.18 billion, an 8.7% increase year-on-year, narrowly surpassing the estimate of $17.17 billion.
- The provision for credit losses decreased by 9.5% year-on-year to $1.3 billion.
- Billed business for the quarter was $408.4 billion, a 7.5% increase year-on-year, exceeding the expected $402.49 billion.
- Total expenses in the fourth quarter were $13.1 billion, slightly above the estimate of $12.88 billion.
- The company plans to raise its quarterly dividend by 17% to $0.82 per share.
- Fourth-quarter revenue growth was driven primarily by strong card member spending, increased net interest income, and accelerated card fee growth.
- American Express plans to continue investing in premium value propositions and marketing.
A look at American Express Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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 the Smartkarma Smart Scores, American Express Co seems to have a positive long-term outlook. With a high momentum score of 5, the company is showing strong upward movement in its performance. Additionally, a growth score of 4 suggests that American Express Co is positioned for potential expansion and development in the future. Although the value and dividend scores are more moderate at 2, indicating room for improvement, the overall resilience score of 3 signifies the company’s ability to withstand economic challenges.
American Express Company, a global payment and travel company, offers charge and credit payment card products as well as travel-related services to consumers and businesses worldwide. With a mix of scores across different factors, American Express Co appears to be on a promising path for growth and stability in the long run.
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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