American Express held its Q3 2024 earnings call on October 18, 2024, at 8:30 a.m. ET, discussing the results for the period ending September 30, 2024. The call included prepared remarks, a Q&A session, and involved multiple participants from the company.
The operator kicked off the conference, introducing Mr. Kartik Ramachandran, Head of Investor Relations, who emphasized the forward-looking nature of the statements and mentioned the inclusion of non-GAAP financial measures. The session was then handed over to Steve Squeri, Chairman and CEO, for an overview of the company’s progress and financial results.
Stephen J. Squeri expressed satisfaction with the company’s performance, highlighting strong earnings per share of $3.49 and revenues of $16.6 billion, marking an 8% increase over the previous year and ten consecutive quarters of record revenues. Due to this performance, American Express raised its full-year EPS guidance to between $13.75 and $14.05. There is an expectation for full-year revenue growth within the range of around 9%.
Squeri attributed the company’s progress to their successful product refresh strategy, which has included updates to 40 products globally. He highlighted the U.S. Consumer Gold Card as pivotal, noting its popularity among Millennials and Gen-Z consumers. The refreshed Gold Card, launched in the third quarter, is tailored to the substantial dining interests of these generations.
Squeri also spoke about the focus on dining as a key growth area. Investments have been made to enhance dining-related services, showcased by the acquisition of Resy and more recently Tock and Rome. These acquisitions are expected to expand benefits for both card members and merchants, fostering stronger engagement and enabling access to more bookable venues.
Following the CEO’s remarks, Christophe Le Caillec, Chief Financial Officer, delved into a detailed financial review, reiterating the company’s solid performance and potential for future growth. He mentioned that the company’s business model remains strong, with an EPS of $3.49 and revenue growth aligning with expectations. The company maintained an effective management of expenses and capital, planning for ongoing robust earnings to support franchise growth and shareholder returns.
Le Caillec further discussed the trajectory of net interest income, operating expenses, and capital management, confirming the company’s continued investment in technology, marketing, and member benefits to sustain growth.
During the Q&A session, analysts posed questions about aspects such as revenue and EPS growth, spending trends, consumer behavior, and competition. American Express executives provided insights into the dynamics of their business amidst current economic conditions, emphasizing stability and strategic investments to drive long-term aspirations.
In closing, Ramachandran thanked participants and invited further inquiries, ensuring the availability of the earnings call webcast on the investor relations website.
