Economic news

AmEx lifts 2024 profit forecast on robust spending by affluent customers

2024.07.19 07:51

(Reuters) -Credit card giant American Express (NYSE:) raised its full-year profit forecast on Friday, as its wealthy customers persisted in splurging on travel, dining and entertainment.

The company also reported better-than-expected second-quarter profit, underscoring the benefit it has enjoyed by focusing on a premium customer base.

AmEx’s affluent cardholders have somewhat insulated it from weakness in the broader economy, even as rival lenders warn of tepid demand due to elevated borrowing costs.

“Increased scale, combined with our premium, high credit quality customers, our well-controlled expense base and our successful investments… fuels the earnings power of the core business,” CEO Stephen Squeri said in a statement.

The company sees its 2024 earnings per share between $13.30 and $13.80, versus the $12.65 to $13.15 range it had forecast earlier. In the second quarter ended June 30, profit was $3.02 billion, or $4.15 per share, 39% higher than a year ago.

Excluding a one-time gain from the sale of its fraud prevention technology unit, Accertify, the company earned $3.49 per share, higher than analysts’ estimate of $3.24 per share, according to LSEG data.

Revenue jumped 9% to a record $16.33 billion, but fell short of an LSEG estimate of $16.59 billion. Shares of the New York-based company fell 2% in premarket trading.

Last month, the company agreed to buy restaurant-booking platform Tock from Squarespace to expand its foothold in the dining industry.

© Reuters. FILE PHOTO: Credit card is seen in front of displayed American Express logo in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The acquisition could support AmEx’s efforts within the small-and-medium-enterprise market, according to analysts.

AmEx views the segment as lucrative despite a recent slowdown in SME spending growth.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 76,603.52 1.50%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,885.88 7.90%
tether
Tether (USDT) $ 1.00 0.10%
solana
Solana (SOL) $ 197.05 5.10%
bnb
BNB (BNB) $ 601.03 2.15%
usd-coin
USDC (USDC) $ 1.00 0.00%
xrp
XRP (XRP) $ 0.555493 3.61%
dogecoin
Dogecoin (DOGE) $ 0.193975 0.19%
staked-ether
Lido Staked Ether (STETH) $ 2,882.49 7.75%
cardano
Cardano (ADA) $ 0.393483 9.85%
tron
TRON (TRX) $ 0.160627 1.99%
the-open-network
Toncoin (TON) $ 4.93 4.16%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,407.16 7.90%
avalanche-2
Avalanche (AVAX) $ 27.59 3.96%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,342.45 1.36%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.36%
weth
WETH (WETH) $ 2,881.18 7.68%
chainlink
Chainlink (LINK) $ 12.57 5.27%
bitcoin-cash
Bitcoin Cash (BCH) $ 384.25 3.12%
sui
Sui (SUI) $ 2.36 3.42%
polkadot
Polkadot (DOT) $ 4.15 1.36%
leo-token
LEO Token (LEO) $ 6.26 0.10%
usds
USDS (USDS) $ 1.00 0.15%
uniswap
Uniswap (UNI) $ 9.08 1.64%
litecoin
Litecoin (LTC) $ 71.93 2.85%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,027.27 7.50%
near
NEAR Protocol (NEAR) $ 4.24 2.30%
aptos
Aptos (APT) $ 9.80 4.84%
pepe
Pepe (PEPE) $ 0.000011 10.81%
bittensor
Bittensor (TAO) $ 513.44 1.53%
internet-computer
Internet Computer (ICP) $ 7.78 1.09%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 0.93%
dai
Dai (DAI) $ 1.00 0.11%
monero
Monero (XMR) $ 166.86 1.89%
stellar
Stellar (XLM) $ 0.100876 4.45%
ethereum-classic
Ethereum Classic (ETC) $ 20.11 4.43%
kaspa
Kaspa (KAS) $ 0.118265 0.06%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
whitebit
WhiteBIT Coin (WBT) $ 19.49 0.69%
aave
Aave (AAVE) $ 185.83 8.87%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.345609 4.49%
blockstack
Stacks (STX) $ 1.68 0.31%
crypto-com-chain
Cronos (CRO) $ 0.092253 8.66%
okb
OKB (OKB) $ 40.35 3.06%
dogwifcoin
dogwifhat (WIF) $ 2.39 0.59%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.05%
arbitrum
Arbitrum (ARB) $ 0.581807 9.27%
mantle
Mantle (MNT) $ 0.679033 14.58%
filecoin
Filecoin (FIL) $ 3.76 3.20%