American Express Company (NYSE:AXP) reiterated its annual revenue and profit forecast after its first-quarter earnings topped expectations as customer spending on travel and entertainment more than doubled to return to pre-pandemic levels.
The New York-based globally integrated payments company recorded 1Q net income of $2.1 billion, or $2.73 per share, for the quarter ending March 31, 2022, compared with $2.2 billion, or $2.74 per share, a year earlier.
The results surpassed the average analyst estimate of $2.44 per share, according to Refinitiv IBES data.
“Our strong first-quarter results demonstrated the continued business momentum we’ve achieved over the last several quarters despite the uncertain macro environment,” American Express CEO Stephen Squeri said in a statement.
“Revenues were up 29% year-over-year, driven by card member spending growth of 35% globally on an FX-adjusted basis, with volumes reaching a monthly record high in March,” Squeri added.
American Express noted it generated 1Q revenue, excluding interest expense, of $11.7 billion.
The company added that customer travel and entertainment spending surged 121% on a forex-adjusted basis from a year earlier, while spending on goods and services, AmEx’s biggest payments category, rose 21%.
Expenses at American Express, though, climbed 34% during the quarter on higher customer engagement and compensation costs.
As well, the company said it expects annual net revenue growth between 18% and 20% for the remainder of 2022, along with earnings per share of $9.25 to $9.65.
Contact Sean at sean@proactiveinvestors.com