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American Express (AXP) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2023, American Express (AXP - Free Report) reported revenue of $15.8 billion, up 11.5% over the same period last year. EPS came in at $2.62, compared to $2.07 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $16.03 billion, representing a surprise of -1.43%. The company delivered an EPS surprise of -1.13%, with the consensus EPS estimate being $2.65.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how American Express performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Card billed business (Network volumes): $434.4 billion compared to the $441.8 billion average estimate based on nine analysts.
Total Card Member loans: $126 billion versus the eight-analyst average estimate of $124.55 billion.
Worldwide cardmember loans - Average loans: $121.8 billion versus $121.66 billion estimated by seven analysts on average.
Total Card Member receivables: $60.4 billion versus $60.3 billion estimated by seven analysts on average.
Risk-Based Capital - Common Equity Tier 1: 10.5% versus the seven-analyst average estimate of 10.8%.
Total cards-in-force: 141.2 million versus 140.48 million estimated by five analysts on average.
Tier 1 Leverage Ratio: 9.9% versus the five-analyst average estimate of 10.4%.
Tier 1 Ratio: 11.3% compared to the 11.1% average estimate based on five analysts.
Total Capital Ratio: 13.1% versus the four-analyst average estimate of 13.2%.
International Card service - Billed business: $88.1 billion versus $89.27 billion estimated by four analysts on average.
Commercial Services - Billed business: $131.3 billion versus $133.28 billion estimated by four analysts on average.
Basic cards-in-force: 118.7 million versus 119.3 million estimated by four analysts on average.
Shares of American Express have returned +0.1% over the past month versus the Zacks S&P 500 composite's +3.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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American Express (AXP) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2023, American Express (AXP - Free Report) reported revenue of $15.8 billion, up 11.5% over the same period last year. EPS came in at $2.62, compared to $2.07 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $16.03 billion, representing a surprise of -1.43%. The company delivered an EPS surprise of -1.13%, with the consensus EPS estimate being $2.65.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how American Express performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Card billed business (Network volumes): $434.4 billion compared to the $441.8 billion average estimate based on nine analysts.
- Total Card Member loans: $126 billion versus the eight-analyst average estimate of $124.55 billion.
- Worldwide cardmember loans - Average loans: $121.8 billion versus $121.66 billion estimated by seven analysts on average.
- Total Card Member receivables: $60.4 billion versus $60.3 billion estimated by seven analysts on average.
- Risk-Based Capital - Common Equity Tier 1: 10.5% versus the seven-analyst average estimate of 10.8%.
- Total cards-in-force: 141.2 million versus 140.48 million estimated by five analysts on average.
- Tier 1 Leverage Ratio: 9.9% versus the five-analyst average estimate of 10.4%.
- Tier 1 Ratio: 11.3% compared to the 11.1% average estimate based on five analysts.
- Total Capital Ratio: 13.1% versus the four-analyst average estimate of 13.2%.
- International Card service - Billed business: $88.1 billion versus $89.27 billion estimated by four analysts on average.
- Commercial Services - Billed business: $131.3 billion versus $133.28 billion estimated by four analysts on average.
- Basic cards-in-force: 118.7 million versus 119.3 million estimated by four analysts on average.
View all Key Company Metrics for American Express here>>>Shares of American Express have returned +0.1% over the past month versus the Zacks S&P 500 composite's +3.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.