American Express 1Q Revenue Rises as Americans Keep Spending
April 20 2023 - 7:38AM
Dow Jones News
By Will Feuer
American Express Co. posted a 22% jump in revenue for the first
three months of the year as Americans kept spending, particularly
on travel, entertainment and restaurants.
The New York City-based credit-card company logged net income of
$1.82 billion, or $2.40 a share, down from $2.10 billion, or $2.73
a share, a year earlier. Analysts surveyed by FactSet were
expecting earnings of $2.66 a share.
Revenue, net of interest expense, rose to $14.28 billion from
$11.74 billion a year ago. Analysts surveyed by FactSet were
expecting revenue of $13.98 billion.
Chief Executive Stephen Squeri said travel and entertainment
spending rose 39%. "We saw a record level of reservations booked on
our Resy restaurant platform," he said. Spending on goods and
services rose 9%, adjusted for foreign exchange.
"Our customers have been resilient thus far in the face of
slower macroeconomic growth, elevated inflation and higher interest
rates, with credit performance remaining best-in-class," he
said.
The company provisioned $1.06 billion for credit losses in the
quarter, compared with a benefit of $33 million in the year-ago
period.
Costs rose 22% to $11.1 billion in the quarter, driven by
customer-engagement expenses and increased usage of travel-related
benefits. Americans stockpiled credit card points during the
pandemic, executives have said, and many are now working through a
backlog of those points.
The company backed its full-year guidance.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
April 20, 2023 07:23 ET (11:23 GMT)
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