U.S. credit card giant American Express (AXP) has issued mixed third-quarter financial results.
On the positive side, the New York-based company reported a Q3 profit of $2.45 billion U.S., or
$3.30 U.S. per share.
The profit figure was well ahead of the $2.96 U.S. per share in earnings that Wall Street analysts had penciled in for the company.
However, American Express missed analysts’ expectations for its Q3 sales.
The credit card issuer announced revenue of $15.38 billion U.S. for the July through September period, which was below consensus forecasts of $15.41 billion U.S.
American Express said its Q3 earnings were helped by continued spending on the part of its wealthy customers, who continue to shrug off concerns about an economic slowdown.
However, the company did boost its provisions for losses to $1.23 billion U.S. during Q3, a 58% increase from the same period of 2022.
American Express said the credit provision boost was made to account for the increased likelihood of some of its customers defaulting on their debt.
Looking ahead, the company reaffirmed its previous full-year guidance, saying it still expects to earn $11 U.S. to $11.40 U.S. per share for all of 2023.
American Express’ stock has risen 5% in the last 12 months to trade at $149.62 U.S. per share.
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