– Credit card issuer American Express Co (AXP.N(b) reported a higher than expected quarterly profit which emphasized US consumer health even where it is evident that manufacturing weakness may be based on manufacturing.
PHOTO FILE: This picture contains a picture of American Express credit cards in this picture. March 17, 2016. REUTERS / Kai Pfaffenbach / Illustration / Photo File
US retail sales fell for the first time in seven months in September, adding concerns after data that there had been a moderation in service growth and sector activity over the last month.
AmEx, based in New York, discovered investors' choice with the ninth quarter of foreign exchange adjusted revenue growth of at least 8%.
“The trends we have seen in the business continue a quarter of this in line with a growing economy, although it is at a more modest pace than last year,” said CEO Steve Squeri.
The banks' quarterly results also showed that American consumers are helping to promote the economy, even as businesses were concerned to reverse expenditure and loans.
“We see a long runway to maintain this performance. In the (fourth quarter), we expect revenue growth with the strong levels we have seen, ”said Chief Financial Officer Jeffrey Campbell with analysts on a post-earning conference call.
AmEx reiterated its adjusted earnings in 2019 per forecast share of $ 7.85 to $ 8.35 and said it is expected to grow income between 8% and 10% in the fourth quarter.
The company, which is Berkshire Hathaway Inc Warren Buffett is her largest shareholderBRKa.N), reward programs on their raised cards and the partnership deals with a number of businesses to combat competition from Chase & JPMorgan's (JPM.N) Sapphire Reserve and Citigroup Inc's (C.N) Secure Card.
AmEx stated that the expenditure of a foreign adjustment card member increased 7% in the third quarter, driven by strong consumer growth in the US and international markets.
The net income rose to $ 1.76 billion, or $ 2.08 per share, in the quarter ended September 30, from $ 1.65 billion, or $ 1.88 per share, a year earlier, said the t company.
A profit of $ 2.03 per share was expected by analysts, according to IBES data from Refinitiv.
The company met the profit estimates for the seventh time in the last nine quarters, according to Refinitiv data.
However, shares in AmEx were 1.3% lower because investors were disappointed that the company did not raise its direction.
“I didn't hear anything that was very serious on the conference call. However, the headline number represents a 5% blow, but the company did not raise its annual guide, ”said Stephen Biggar, research director of financial institutions with Argus Research, with Reuters.
Reporting by Noor Zainab Hussain, additional reporting at Anirban Sen and C Nivedita in Europe Europe; Edited by Shailesh Kuber
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