American Express Company (NYSE: AXP) delighted the market with its first-quarter results, showcasing a significant leap in profits, revenue, and new customer acquisitions. For the quarter ending March 31, 2024, the financial services giant reported a profit of $2.3 billion, translating to earnings per share (EPS) of $3.33, up 39% from the $1.8 billion or $2.40 per share seen a year ago. This notable increase in EPS surpassed Wall Street estimates which were pegged at $2.97. The company's revenue saw an 11% year-over-year increase, reaching $15.8 billion, driven by higher net interest income and increased card member spending—a performance that aligned with analyst expectations.

Key to American Express's impressive performance were the 3.4 million new card acquisitions seen in the quarter, with a notable emphasis on premium customers. CEO Stephen Squeri highlighted the company's success in attracting high-spending, high credit-quality clients, particularly noting the significant engagement from Millennial and Gen Z consumers, who represented over 60% of new consumer account acquisitions globally.

The company's operational metrics further underscored its strong market position, with total Card Member loans reaching $126.6 billion, surpassing analyst expectations. Despite minor setbacks in areas like card billed business and total Card Member receivables slightly missing analyst projections, the company boasted robust growth in key segments, including a 5% year-over-year increase in network volumes to $419 billion, though slightly below the consensus estimate of $420 billion.

In line with its steadfast growth, American Express reaffirmed its full-year guidance for 2024, projecting revenue growth to land between 9% and 11%, with EPS expected to range from $12.65 to $13.15. This guidance remains in alignment with analyst expectations, which anticipate a revenue growth rate of approximately 9.4% to $66.3 billion and an EPS of $12.83 for the year.

American Express also reported strategic capital deployment, including a share buyback of five million common shares in the first quarter of 2024 and a 17% increase in its dividend on common shares to 70 cents per share.

From an operational standpoint, the diverse revenue streams of American Express saw varying degrees of success across different segments. The U.S. Consumer Services segment reported a robust 14% year-over-year revenue increase to $7.5 billion, supported by heightened net interest income and Card Member spending. The Commercial Services and Global Merchant and Network Services segments also exhibited strong performances, although the International Card Services segment saw a modest 8% revenue increase, slightly missing consensus expectations.

As American Express continues to navigate through the current credit cycle successfully, its stock reflects investor confidence with a notable upward trajectory. The company's robust Q1 results, combined with its optimistic forecast for the remainder of 2024, underscore its resilience and strategic positioning in the competitive finance market. With a focus on high-quality customer acquisitions and sustained revenue growth, American Express stays well-poised for continued success and market leadership.