AmEx lifts 2024 profit forecast on robust spending by affluent customers
Recasts with forecast in paragraph 1
July 19 (Reuters) -Credit card giant AmericanExpress AXP.N 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 havesomewhat 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, profitwas $3.02 billion, or $4.15 per share, 39% higher than a year ago.
Excluding a one-time gain from the sale ofits fraudprevention 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 SQSP.N to expand its foothold in the dining industry.
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.
Reporting by Niket Nishant in Bengaluru; Editing by Pooja Desai
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
