NYSE$AXP

American Express CO · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

American Express reported strong Q2 2024 results with record revenue and significant EPS growth.

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.

Headline financials

Total Revenue

$16.3B

Previous: $15.1B+8.5%
EPS

$4.15

Previous: $2.89+43.6%
Billed Business

$388B

No prior period
Credit Loss Provisions

$1.27B

No prior period
Net Write-off Rate

2.1%

No prior period
Total Expenses

$11.3B

No prior period
Avg Diluted Shares

717.0M

No prior period
Return on Equity

41.4%

No prior period
Capital Expenditures

-$961M

Previous: -$736M-30.6%
Free Cash Flow

$2.05B

Previous: $1.44B+42.8%
Net Income

$3.02B

Previous: $2.17B+38.7%
Operating Income

$10.1B

Previous: $8.92B+13.0%
Gross Profit

$15.1B

Previous: $13.9B+8.7%
Cash & Equivalents

$52.7B

Previous: $41.7B+26.3%
Total Assets

$272B

Previous: $245B+11.2%
Stock-Based Comp

$104M

Previous: $108M-3.7%

Revenue & EPS history

American Express · Revenue · Quarterly

$16.3B

Q2 2024+8.5%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

American Express · $13.5B total across 3 segments · Q3 2023

  • U.S. Consumer
    $7.2B+16.1%
  • Commercial
    $3.7B+5.7%
  • International Cards
    $2.6B+13.0%

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.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.3%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+11.2%

Q3 2016

Best reaction

-12.6%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.8%-5.1%-6.3%
Q4 2025-1.1%-1.3%-13.8%
Q3 2025+7.2%+8.9%+10.5%
Q2 2025+0.3%-0.3%+6.0%
Q1 2025-0.6%-0.2%+18.5%
Q4 2024-1.4%-3.3%-9.4%
Q3 2024-5.3%-5.1%+0.4%
Q2 2024-1.8%-3.3%+1.0%
Q1 2024+7.1%+9.9%+11.6%
Q4 2023+6.8%+6.7%+14.1%
Q3 2023-3.4%-4.1%+8.6%
Q2 2023-5.3%-5.3%-9.5%
Q1 2023-0.7%-5.4%-7.3%
Q4 2022+10.8%+11.4%+11.8%
Q3 2022-0.6%+3.1%+7.1%
Q2 2022+2.4%+1.0%+8.0%
Q1 2022-0.9%-4.4%-17.5%
Q4 2021+10.3%+11.4%+18.5%
Q3 2021+2.7%+0.3%-2.2%
Q2 2021+1.0%-0.5%-6.5%
Q1 2021+2.2%+3.7%+6.6%
Q4 2020-5.8%-4.0%+13.1%
Q3 2020-7.5%-12.6%+7.4%
Q2 2020-0.9%+0.0%-0.5%
Q1 2020+3.2%+16.6%+8.3%
Q4 2019-0.6%+0.2%+2.7%
Q3 2019-0.0%-2.2%+1.4%
Q2 2019-1.9%-0.4%-2.9%
Q1 2019+0.5%+2.0%+6.5%
Q4 2018+1.1%+0.4%+8.0%
Q3 2018+2.3%+0.0%+4.9%
Q2 2018-1.0%+0.1%+1.9%
Q1 2018+9.1%+7.2%+7.6%
Q4 2017-2.7%-2.8%-3.9%
Q3 2017+0.2%+0.8%+2.2%
Q2 2017-0.2%-0.6%-0.2%
Q1 2017+5.6%+6.1%+1.3%
Q4 2016-1.7%-0.1%+2.9%
Q3 2016+11.2%+11.7%+18.2%
Q2 2016-1.1%+0.3%+2.1%
Q1 2016+3.2%
Q4 2015-12.6%
Q3 2015-5.8%
Q2 2015-2.5%
Q1 2015-3.0%
Q4 2014-3.3%
Q3 2014-3.0%
Q2 2014-1.0%
Q1 2014+0.2%
Q4 2013+3.1%
Q3 2013+6.6%
Q2 2013-5.4%
Q1 2013+0.7%
Q4 2012+1.6%
Q3 2012-1.7%
Q2 2012-4.2%
Q1 2012-1.0%
Q4 2011+2.9%
Q3 2011+5.5%
Q2 2011-3.5%
Q1 2011-1.2%
Q4 2010-0.9%
Q3 2010+3.2%
Q2 2010-1.4%
Q1 2009-7.3%
Q1 2010+1.0%
Q4 2009+0.2%
Q3 2009-2.1%
Q3 2008-2.1%
Q4 2007+1.5%
Q2 2008+1.5%
Q2 2009+1.5%
Q4 2008+1.5%

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