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Key takeaways
- American Express said its quarterly revenue rose to a record high, as the card issuer benefited from upgrades to cutting-edge credit cards and the spending of affluent shoppers.
- The company also raised its minimum forecast for the full year.
Strong spending by America’s wealthy consumers helped American Express achieve record quarterly revenue.
The card issuer reported third-quarter earnings per share of $4.14 on revenue that rose 11% year-over-year to a record $18.43 billion. Both numbers exceeded analyst expectations compiled by Visible Alpha, as the company benefited from cutting-edge credit card modernization and the spending of affluent shoppers.
The company also boosted its bottom line forecast, now expecting full-year EPS of $15.20 to $15.50, up from $15 to $15.50. It said it expects revenue growth of 9% to 10%, compared to 8% to 10% previously.
American Express shares jumped more than 6% to about $343 in recent trading after the news, putting them on track to close at a record high.
Why is this important?
The American Express results confirm recent trends that suggest the economy is increasingly driven by the spending of wealthy Americans, who may benefit disproportionately from stock market gains.
CEO Stephen Squirre pointed to the company’s launch of refreshed high-end credit cards as a contributor to the strong results, adding that demand and engagement exceeded expectations.
As Friday progressed, American Express shares were up about 15% this year, compared with a roughly 13% gain for the S&P 500.
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