Here is a summary of the key earnings data points, guidance, and thematic trends from the American Express Q1 2024 earnings call:
Earnings Data Points:
- Q1 revenues up 11% YoY to $15.8B
- EPS up 39% to $3.33
- Overall spending up 7% on an FX-adjusted basis
- U.S. Consumer Card spending up 8%
- International Card spending up 13% on an FX-adjusted basis
- 3.4M new cards acquired in Q1
- Net interest income up 26% YoY
Guidance:
- Reaffirming full year guidance of 9-11% revenue growth and EPS of $12.65 to $13.15
- Expecting variable customer engagement expenses to grow slightly higher than revenue for full year
- Increasing marketing spend in 2024 vs 2023
- Low growth expected in operating expenses
Key Themes & Trends:
- Strong growth in consumer spending, especially internationally
- Continued momentum attracting high-spending, premium customers
- Softness in U.S. small & medium sized business spending
- Product refreshes stimulating demand and engagement
- Focus on efficiency through low operating expense growth
- Strong credit performance and loan growth
- Growing acceptance and coverage internationally
- Deposits providing stable, economical funding source
- Continued investment in premium products, marketing, and international markets to drive long-term growth