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American Express earned $2.51 billion, or $3.49 per share, for
the period ended Sept. 30. That compares with $2.45 billion, or
$3.30 per share, a year earlier.
The performance beat the $3.27 per share that analysts surveyed
by Zacks Investment Research were calling for.
Revenue totaled $16.64 billion, meeting Wall Street's estimates.
The company once again benefited from its card members who
tend to be wealthier and less exposed to economic fluctuations
continuing to spend on their cards, despite some economic
uncertainty and the effects of inflation.
Customers spent $387.3 billion on their cards last quarter, up
6% from the year before. Merchants pay a fee for each time they
accept an American Express card. That fee ranges depending on
industry and merchant size, but is typically 2% to 4%.
Further, American Express customers are keeping a balance on
their cards. The company reported $134.5 billion in card member
loans, up from 14% a year earlier.
That helped American Express earn interest income of $6.15
billion in the quarter, up 17% from the year before.
The new benefits and capabilities we have added in popular
categories like dining are fueling our growth with millennial
and Gen Z consumers, who represent 80% of the new accounts
acquired on the U.S. Consumer Gold Card, and remain our fastest
growing consumer cohort overall in the U.S., Chairman and CEO
Steve Squeri said in a statement.
American Express also raised its full-year earnings outlook on
Friday. The company now foresees earnings in a range of $13.75
to $14.05 per share. Its prior forecast was for earnings between
$13.30 and $13.80 per share. Analysts polled by FactSet predict
full-year earnings of $13.24 per share.
Shares fell 2.5% before the market open on Friday.
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