10:21 AM EDT, 10/18/2024 (MT Newswires) -- American Express' ( AXP ) third-quarter results increased year on year but revenue fell short of market estimates, while the payments company lifted its full-year earnings outlook.

The company posted adjusted earnings of $3.49 a share for the September quarter, up from $3.30 the year before and topping the Capital IQ-polled consensus of $3.29. Revenue, net of interest expense, rose to $16.64 billion from $15.38 billion, but was just shy of the Street's view for $16.65 billion.

The stock fell 5.7% in Friday trading.

"In the third quarter, total card member spending increased 6% and card fee revenue growth accelerated to 18%," Chief Executive Stephen Squeri said in a statement. "We continued to attract large numbers of new premium card members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline."

US consumer services revenue advanced 10% to $7.94 billion while international card services climbed 11% to $2.94 billion. Commercial services rose 7% to nearly $4 billion, while global merchant and network services remained flat at $1.85 billion.

Provisions for credit losses totaled $1.36 billion, compared with $1.23 billion a year earlier, reflecting higher net write-offs driven by growth in loan balances, the company said. Consolidated expenses increased 9% to $12.08 billion.

American Express ( AXP ) now expects 2024 per-share earnings between $13.75 and $14.05, up from its previous projection of $13.30 to $13.80, based on its year-to-date performance and the robust earnings its core business is generating, according to Squeri. The current consensus on Capital IQ is for GAAP EPS of $13.71.

The EPS outlook represents 23% to 25% year-over-year growth, Chief Financial Officer Christophe Le Caillec said on an earnings call, according to a Capital IQ transcript. "It is higher than we expected at the start of the year and above our long-term aspiration of mid-teens growth."

American Express ( AXP ) anticipates full-year revenue growth of about 9%, according to an investor presentation. In January, the company set out expectations for revenue to increase by 9% to 11% in 2024.

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