AXP: Gen Z / Millennial Overtakes Boomers in US Card Spend

(NYSE:AXP) American Express Presents Q4 FY23 Results

American Express

Weighting as of writing: 2%

9th February 2024 - Q4 FY23 Results

On January 26th, American Express published results for Q4 FY23. With record revenue and net income, and guidance that looks set to continue progress on the 2021 growth plan, it was a solid year.

Key points from the report:

• Record revenue of $60.5 billion in FY23 (+14%, reported)

  • Guidance of between 9% and 11% growth in FY24.

• Billed business ($1.46 trillion) +9% for FY23

  • G&S (+6%), T&E (+19%)

• Record FY net income of $8.4 billion (+11%)

• EPS of $11.21 in FY23 (+14%)

  • $12.65 (+12.8%) to $13.15 (+17.3%) next year

  • 3% reduction in share count YoY

• 140 million cards, +12.2m in 2023.

  • ~80m proprietary (amex issued)

  • The last two-quarters of net additions were slightly below the base rate of 3m, but a refresh of ~40 offerings next year might help accelerate. Marketing spend ($5.2b for the year) was ~$300m below expected and is expected to step up in 2024.

• Announced an agreement to sell the certified business. Expected to realise a “s…