American Express Surpasses Expectations with Strong First-Quarter Profit

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American Express first-quarter profit topped estimates, thanks to strong spending by affluent users.
American Express first-quarter profit topped estimates, thanks to strong spending by affluent users.

American Express has exceeded expectations for first-quarter profit, driven by robust spending from affluent consumers. Despite softer growth in U.S. small business customers, the company maintains a positive outlook for future spending trends.

Performance Highlights:

U.S. consumer spending rose by 8% compared to the previous year, while international consumer spending saw a notable increase of 14%. However, spending by U.S. small and medium enterprises (SMEs) experienced more modest growth, up by 1%.

Strategic Focus:

CEO Stephen Squeri emphasizes refocusing efforts on U.S. small business customers as a future growth opportunity. The company aims to capitalize on potential stronger spending from SMEs in the coming periods.

Analyst Perspective:

Analysts praise American Express’s focus on high-income clientele and SMEs, which has shielded the company from economic turbulence. They also view the company’s strategic initiatives and commitment to enhancing its value proposition positively.

Revenue and Profit Outlook:

American Express maintains its revenue growth expectations of 9% to 11% and reaffirms a profit forecast of $12.65 to $13.15 a share for the fiscal year 2024. The company’s first-quarter profit jumps 31%, reaching $2.44 billion, or $3.33 a share, surpassing analysts’ average expectations.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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