American Express (AXP) has reported mixed financial results for this year’s third quarter.
The credit card issuer announced earnings per share (EPS) of $4.68 U.S., beating Wall Street’s forecast of $4.50 U.S.
Revenue in the July through September period totaled $20.06 billion U.S., which slightly missed analysts’ consensus expectation of $20.12 billion U.S. Sales were up 8.9% from a year earlier.
Management said the quarterly results were boosted by strong spending among its mostly affluent cardholders.
Overall cardmember spending, which American Express calls “billed business,” rose 8% year-over-year to $454 billion U.S.
The company added that its business also benefited from higher net interest income due to growth in credit card balances and fees charged on its cards.
The financial results of American Express are closely watched on Wall Street because its credit cards are widely used by high income earners and businesses.
Looking ahead, American Express raised the low-end of its full-year earnings guidance to a range of $17.60 U.S. to $17.90 U.S. per share.
Previous guidance called for earnings this year of $17.30 U.S. to $17.90 U.S. per share.
The credit card giant maintained its full-year revenue growth forecast of 10%.
AXP stock has declined 8% over the past 12 months to trade at $325.17 U.S. a share.
Tech Insider
