American Express Earnings: Net Interest Income Drives Another Quarter of Double-Digit Revenue Growth

Wide-moat American Express reported solid fourth-quarter 2023 earnings that were roughly in line with our expectations as strong net interest income more than offset slow spending growth on the company's commercial cards. Net revenue increased 11% from last year and 2.7% from last quarter to $15.8 billion, and net income increased 23% from last year to $1.9 billion. As we incorporate these results, we expect to increase our $178 per-share fair value estimate by a low-single-digit to mid-single-digit percent.