American Express Co. provided an positive outlook on its revenue potential for the year after payment growth quickened in the quarter.
The card company forecast 8% to 10% revenue growth in 2025, it said when it reported fourth-quarter results on Friday. Analysts tracked by FactSet estimated $71.3 billion in revenue, which would translate to 8.1% growth.
American Express with its 2025 profit forecast AXP +1.12% is aiming for $15 to $15.50 in earnings per share. That straddles the consensus view, which stood at $15.24.
Shares were slipping fractionally in Friday’s premarket trading.
The numbers from Amex’s fourth quarter showed greater growth — 8%, as opposed to 6% in the third quarter. Results on this metric, which tracks spending growth, highlighted increased spending on both the consumer and commercial sides of the business during the holidays.
The firm met revenue expectations for the fourth quarter, bringing in $17.2 billion, thanks to higher spending, “accelerated card-fee growth” and more net interest income.
Amex had consolidated provisions for credit losses of $1.3 billion compared with $1.4 billion a year earlier. The company said its relatively lower net reserve build had come year-over-year, though it also reported higher write-offs even as its net write-off rate fell, to 1.9% from 2.0%.
Fourth-quarter earnings of $3.04 a share pushed past Wall Street’s hurdle of $3.03 based on the FactSet consensus view.
Amex is also increasing its dividend by 17% to 82 cents a share.
