Credit card giant American Express (AXP) has reported first-quarter financial results that beat Wall Street forecasts across the board.
The New York-based company reported earnings per share (EPS) of $4.28 U.S., surpassing the $4.00 U.S. that analysts had expected. The profit increased 15% from a year ago.
Revenue of $18.90 billion U.S. topped the $18.60 billion U.S. that Wall Street had penciled in for the company. Sales were up 11% year-over-year.
Management at American Express said they continue to benefit from spending by its affluent card members, which grew at the highest quarterly rate in three years.
Card member spending rose 9% on a foreign exchange-adjusted basis in Q1 from a year ago.
Looking ahead, American Express left its guidance for this year unchanged, citing geopolitical uncertainty and risks.
The company said that it still expects revenue growth of 9% to 10% and per-share earnings of $17.30 U.S. to $17.90 U.S.
Despite continued strong financial performance, American Express’ stock has been beaten down this year on concerns that artificial intelligence (A.I.) will disrupt its business.
AXP stock is down 11% year-to-date and trading at $332.90 U.S. per share.
