(Reuters) – American Express reported a first-quarter profit on Friday that beat Wall Street estimates, thanks to its wealthy customers increasing spending as recession fears faded.
American Express reaffirmed its 2024 earnings per share forecast of $12.65 to $13.15 per share and revenue growth of 9% to 11%.
American Express shares gained around 2% in pre-market trading in New York.
“We continue to attract customers who are high spenders and have high credit quality,” Stephen Squeri, chief executive, said in a statement.
Read also…
The credit card issuer has been immune to changes in spending and downplayed fears of an economic slowdown over the past two years, bucking a broader trend of slowdown expectations of consumption.
American Express’ provisions amounted to $1.3 billion (939.67 million euros) in the first quarter, compared to $1.1 billion recorded a year ago.
The New York-based company earned $3.33 per share for the quarter ended March, up from $2.40 per share a year earlier.
According to LSEG data, analysts were expecting earnings of $2.96 per share.
(Reporting Mehnaz Yasmin and Niket Nishant in Bangalore; French version Lina Golovnya, edited by Blandine Hénault)
©2024 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.