American Express (NYSE: AXP) shares rose 3% on Wednesday – and showed promise Thursday -- after the company reported first-quarter earnings that beat estimates, helped by an increase in spending by cardholders.
The company said it now expects 2018 earnings per share at the high end of its outlook of $6.90 to $7.30.
Earnings per Share came in at $1.86, compared to an estimate of $1.71 from Thomson Reuters. Revenue was $9.72 billion, compared to an estimate of $9.46 billion.
The results for the quarter ended March 31 were AmEx's first since CEO Stephen Squeri took the helm of the company in February.
Said Squeri: "Our year is off to a good start with double-digit growth in billed business, revenues and earnings. Card Member spending grew 12%, and we acquired 3.5 million new cards across our global issuing business, reflecting in part the recent Hilton portfolio acquisition. Credit indicators are in line with our expectations, and the loan portfolio grew 16%.
"Today’s results are showing good returns on the investments we’ve been making to drive growth in the premium sector, with co-brand partners, in our merchant network and with small and mid-sized businesses. We plan to continue these investments this year and support our initiatives with the global brand campaign we launched this month.
AmEx has spent heavily on rewards to lure customers as it faces more competition from banks like J.P. Morgan Chase (NYSE: JPM) and Citigroup (NYSE: C)
Shares screamed higher $7.32, or 7.7%, to $102.47 mid-morning Thursday.
