American Express Stock Drops On Q4 Earnings Miss, But Retail Sentiment Hits Year High

According to Koyfin data, its earnings narrowly missed Wall Street expectations, while quarterly revenue of $17.18 billion was in line with estimates.

Stocktwits Inc

Published: Jan 24, 2025, 9:58 PM IST

American Express shares fell 3.2% in morning trade and retreated from all-time highs on Friday after the company reported earnings below Wall Street expectations. However, retail sentiment on Stocktwits persevered to year highs.

The company reported a net income of $2.17 billion, or $3.04 per share, for the quarter ended Dec. 31, compared with $1.93 billion, or $2.62 per share, last year.

However, according to Koyfin data, its earnings narrowly missed Wall Street expectations.

Its quarterly revenue of $17.18 billion was in line with market estimates.

The company’s billed business, a metric used to gauge total spending with its cards, rose 8% to $408 billion, helped by a 10% hike in customers' travel and entertainment-related expenditures.

The New York-based firm said its net card fees rose 18% compared to the same period last year, driven by growth in its premium card portfolios.

American Express said its consolidated provisions for credit losses fell to $1.3 billion from $1.4 billion a year ago. The fall reflected a lower net reserve build year-over-year, partially offset by higher net write-offs.

Its net interest income (NII) rose 13% to $4 billion during the fourth quarter but remained flat sequentially.

American Express forecasted 2025 revenue to rise between 8% and 10% and projected full-year earnings per share in the range of $15.00 to $15.50. Analysts, on average, expect the company to earn $15.22 per share.

It also raised its dividend by 17%.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (92/100) territory from ‘bullish’ (58/100) a day ago to hit its highest levels in a year, while retail sentiment chatter jumped to ‘extremely high.’