American Express Company (NYSE:AXP) topped analyst estimates in its third-quarter results as cardholder spending increased.
The financial services giant reported earnings of $1.88 per share on revenue of $10.14 billion compared with $1.51 per share on revenue of $9.29 billion in the previous year’s third quarter.
The New York-based company beat Wall Street estimates of $1.76 EPS on revenue of $10.05 billion.
The company credited the better-than-expected results to higher spending, fee income and loans.
“Revenues rose 9 percent (10 percent FX-adjusted2), reflecting very good performance across our businesses, customer segments and geographies. Card Member spending was up 8 percent (10 percent FX-adjusted). Credit indicators remained strong. Operating expenses were well controlled,” said CEO Stephen J. Squeri in the company’s press release.
For the year ahead, American Express expects revenue to increase between 9% and 10%.
Adjusted earnings are forecast to be $7.30 to $7.40 per share, up from its previous guidance of $6.90 to $7.30 per share.
The company also announced that it would expand its digital payments partnership with PayPal Holdings Inc (NASDAQ:PYPL), allowing American Express cardholders to send money through PayPal or Venmo and to use rewards points on purchases from PayPal merchants.
Cardholders can also pay off their credit card bill with PayPal or Venmo and add their cards to PayPal’s wallet via the Amex app.
Shares were up more than 1% to $103.91 in Thursday after-hours trading.
Contact Lenore Fedow at lenore@proactiveinvestors.com
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