American Express Company Q2 2024 Earnings Summary $AXP
American Express Company reported Q2 2024 results that showcased strong financial performance and strategic growth initiatives. CEO Stephen Squeri shared that the company achieved record revenue of $16.3 billion, marking a 9% increase year-over-year and an impressive 44% increase in earnings. Excluding a one-time gain from the sale of Accertify, earnings per share still grew 21%.
Squeri highlighted the exceptional strength of American Express’s core business, stating, “Our continued strong performance starts with our premium customers… The earnings power of our business model is driven by several interrelated factors.” He emphasized that the company plans to invest about $6 billion in marketing this year, a $800 million increase from 2023, all funded by strong core business performance.
The strategic focus remains on enhancing membership value through product innovations and increased customer engagement. Squeri noted, “We are on track to refresh approximately 40 products globally by the end of the year,” which aims to attract new premium card members and boost engagement with existing customers.
CFO Christophe Le Caillec reported an 11% year-over-year growth in loans and card member receivables, although he anticipated that growth may moderate slightly throughout the year. He confirmed, “Our credit performance remains very strong,” with stable write-off rates expected for the rest of 2024.
Squeri also addressed the spending trends, indicating a stable environment characterized by a 6% growth in U.S. consumer spending and robust performance in international markets, which grew 13% in billed business. They expect to maintain revenue growth in the range of 9% to 11% for the year.
Looking ahead, both executives expressed confidence in the company’s ability to navigate potential challenges in consumer spending while continuing to build strong investments in marketing and product development. Squeri concluded with optimism for sustained long-term growth, stating, “The power of our unique business model gives us confidence in our ability to achieve our long-term aspiration for the business.”
In summary, American Express's Q2 2024 earnings reflect a resilient business poised for continued growth through strategic investments and strong customer loyalty.
