American Express Surges 4.33% on Earnings Beat
American Express, a leading financial services corporation, has released its first-quarter results for the year 2021. The company has outperformed the analyst estimates with higher-than-expected revenue, net income, and diluted earnings per share (EPS). The company's net interest income has also been higher than anticipated, thereby avoiding the fate of several other financial firms.
American Express has reaffirmed its full-year guidance for fiscal 2024, projecting significant growth in year-over-year revenue and EPS. The company has projected revenue growth of 9% to 11% and EPS of $12.65 to $13.15 for 2024.
The company's revenue of $15.8 billion in Q1 2021 has exceeded the consensus analyst estimates compiled by Visible Alpha, which was $15.76 billion. The net income of $2.44 billion and diluted EPS of $3.33 have also surpassed the estimates of $2.17 billion and $2.96 per share, respectively.
American Express has reported $3.77 billion of profit in the net interest income metric, which is higher than the market expectation of $3.66 billion. The company's CEO, Stephen Squeri, has attributed the success to the company's ability to attract high-spending, high-credit-quality customers to the franchise. The company has seen strong demand from millennial and Gen Z consumers, who accounted for over 60% of new consumer account acquisitions globally.
The company's shares initially fell 2% in pre-market trading following the earnings report's release before reversing course. The stock has gained about 20% so far this year and is currently up more than 3% at $224.48 as of 10:17 a.m. ET.
Last month, American Express (
AXP
) announced an increase in its quarterly dividend to 70 cents per share, up from the previous mark of 60 cents.
In conclusion, American Express (
AXP
) has exceeded the market's expectations with its Q1 2021 results and reaffirmed its full-year growth guidance for 2024. The company's ability to attract high-spending, high-credit-quality customers and strong demand from millennial and Gen Z consumers suggests a promising future for the corporation.
American Express has reaffirmed its full-year guidance for fiscal 2024, projecting significant growth in year-over-year revenue and EPS. The company has projected revenue growth of 9% to 11% and EPS of $12.65 to $13.15 for 2024.
The company's revenue of $15.8 billion in Q1 2021 has exceeded the consensus analyst estimates compiled by Visible Alpha, which was $15.76 billion. The net income of $2.44 billion and diluted EPS of $3.33 have also surpassed the estimates of $2.17 billion and $2.96 per share, respectively.
American Express has reported $3.77 billion of profit in the net interest income metric, which is higher than the market expectation of $3.66 billion. The company's CEO, Stephen Squeri, has attributed the success to the company's ability to attract high-spending, high-credit-quality customers to the franchise. The company has seen strong demand from millennial and Gen Z consumers, who accounted for over 60% of new consumer account acquisitions globally.
The company's shares initially fell 2% in pre-market trading following the earnings report's release before reversing course. The stock has gained about 20% so far this year and is currently up more than 3% at $224.48 as of 10:17 a.m. ET.
Last month, American Express (
AXP
) announced an increase in its quarterly dividend to 70 cents per share, up from the previous mark of 60 cents. In conclusion, American Express (
AXP
) has exceeded the market's expectations with its Q1 2021 results and reaffirmed its full-year growth guidance for 2024. The company's ability to attract high-spending, high-credit-quality customers and strong demand from millennial and Gen Z consumers suggests a promising future for the corporation.
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