American Express Posts Higher 3Q Revenue, Boosted by Travel Spending
October 21 2022 - 6:30AM
Dow Jones News
By Will Feuer
American Express Co. posted higher revenue in the third quarter
as card-member spending held up, driven by a surge in travel
spending despite macroeconomic concerns.
The New York City-based credit-card company logged net income of
$1.88 billion, or $2.47 a share, up from $1.83 billion, or $2.27 a
share, a year earlier. Analysts polled by FactSet had forecast
earnings of $2.40 a share.
Revenue net of interest expense rose 24% to $13.56 billion,
driven by increased member spending. Analysts surveyed by FactSet
had been expecting revenue of $13.52 billion.
The company saw card members spend more on both goods and
services as well as travel and entertainment, Chief Executive
Stephen Squeri said. Travel and entertainment spending surged 57%
from a year earlier when adjusted for currency fluctuations, Mr.
Squeri said.
"The demand for travel has exceeded our expectations throughout
the year," he said. In American Express's international markets,
travel and entertainment spending volumes surpassed pre-pandemic
levels for the first time in the quarter, stripping out the effects
of currency fluctuations, Mr. Squeri said.
At the same time, the company provisioned more for credit
losses, citing a growth in card member loans and a murkier
macroeconomic forecast. American Express provisioned $778 million
for credit losses in the recently ended quarter, compared with a
benefit of $191 million a year ago.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
October 21, 2022 07:15 ET (11:15 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
American Express (NYSE:AXP)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Express (NYSE:AXP)
Historical Stock Chart
From Apr 2023 to Apr 2024
