AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
American Express Company (NYSE:AXP) is down 3.0% on Friday even though it reported better-than-expected results for its fiscal third quarter.
AMEX says credit metrics are holding up well
The financial services firm reported provisions for credit losses of $1.2 billion versus $778 million a year ago suggesting higher net write-offs.
Still, American Express said credit metrics of its customers were holding up well. Delinquency rates, as per its press release, remain below levels seen before the pandemic. According to CEO Stephen Squeri:
We believe we’re well positioned as we seek to achieve our long-term growth plan aspirations in 2024 and beyond in a steady-state macro environment.
Nonetheless, Citi analyst Keith Horowitz maintained his “sell” rating on AXP today and lowered the price target to $143 – roughly where the stock is already trading at writing.
Watch here: https://www.youtube.com/embed/ZAPxw9ZWBKY?feature=oembedAmerican Express Q3 financial highlights
- Earned $2.45 billion versus the year-ago $1.88 billion
- Per-share earnings also went up from $2.47 to $3.30
- Revenue climbed 13% year-on-year to $15.38 billion
- Consensus was $2.95 a share on $15.36 billion revenue
- Cardholder spending jumped 7.0% year-over-year in Q3
American Express said travel and leisure/entertainment continued to be the centre of spending in its recently concluded quarter. On CNBC’s “Squawk on the Street”, Nathan Sheets – the Global Chief Economist of Citi said:
The U.S. consumer has been exceptionally strong. It’s really hard, at this stage, to see much evidence of a meaningful slowing in the consumer.
Earlier this week, the U.S. Census Bureau said retail sales were up a more than expected 0.7% in September.
The post American Express Q3 earnings: ‘consumer has been exceptionally strong’ appeared first on Invezz
