By Will Feuer
American Express issued a strong earnings outlook for 2024 after robust consumer spending pushed the company's financial results higher in the fourth quarter of 2023.
The New York City-based credit-card company logged net income of $1.93 billion, or $2.62 a share, up from $1.57 billion, or $2.07 a share, a year earlier. Analysts surveyed by FactSet expected $2.64 a share.
Revenue rose 11% to $15.8 billion. Analysts surveyed by FactSet expected $16 billion.
For 2024, the company is targeting revenue growth of 9% to 11% and earnings of $12.65 a share to $13.15 a share, topping the $12.38 a share that analysts expected.
In the fourth quarter, the company's provision for credit losses jumped 40% to $1.44 billion, reflecting higher write-offs. Still, the company said credit metrics remained strong, with write-off and delinquency rates for total card member loans and receivables below pre-pandemic levels.
Chief Executive Stephen Squeri said demand for the company's premium-branded cards remained strong.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
01-26-24 0719ET