Increase In Card Member Spending Boosts Amex Q1 Revenue, Company Eyes Steady Annual Growth
Portfolio Pulse from Anusuya Lahiri
American Express Co (AXP) reported a first-quarter revenue increase of 11% year-on-year to $15.80 billion, slightly above consensus estimates. The growth was driven by higher net interest income and increased Card Member spending. EPS was $3.33, surpassing the consensus of $2.95. The company also reiterated its FY24 revenue growth outlook of 9%-11%. Despite mixed analyst opinions regarding credit quality and growth, AXP's stock has gained 32% over the last 12 months. AXP's performance can impact related ETFs like IPAY and JRNY.
April 19, 2024 | 12:30 pm
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POSITIVE IMPACT
American Express reported an 11% increase in Q1 revenue to $15.80 billion and an EPS of $3.33, exceeding expectations. The company remains optimistic about its FY24 revenue growth.
The positive earnings report and the reaffirmation of a strong FY24 outlook are likely to instill investor confidence, potentially leading to a short-term uptick in AXP's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AXP's positive performance and growth outlook may positively impact IPAY, given its exposure to mobile payments and inclusion of AXP.
Given IPAY's focus on mobile payments and its inclusion of AXP, the positive news from AXP could lead to increased investor interest in IPAY, potentially boosting its price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
AXP's report of increased Card Member spending, especially on travel-related benefits, could positively influence JRNY, which benefits from global travel trends.
JRNY, focusing on global travel beneficiaries, may see a positive impact from AXP's increased spending on travel-related benefits, suggesting a favorable outlook for travel and related investments.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60