NEW YORK CITY (dpa-AFX) - American Express Co. (AXP) Thursday reported a 22 percent increase in third-quarter profit, driven largely by revenue growth reflecting higher card member spending and loan growth. The company also lifted its full-year 2018 outlook.
New York-based American Express' third-quarter profit rose to $1.65 billion or $1.88 per share from $1.36 billion or $1.51 per share a year ago. On average, 28 analysts polled by Thomson Reuters expected earnings of $1.76 per share for the quarter.
American Express, the biggest credit-card issuer on the basis of purchases, said revenues, net of interest expense, for the quarter grew 9 percent to $10.14 billion from $9.29 billion a year ago. Twenty analysts had a consensus revenue estimate of $10.05 billion.
The growth in revenues reflected higher spending by consumer, small business, and corporate Card Members. Revenues for the quarter also benefited from higher loan volumes and fee income.
Card Member spending grew 8 percent and 3.0 million new cards were acquired, the company said.
Provisions for losses were $817 million, up 6 percent from a year ago. Total expenses for the quarter increased 8 percent to $7.21 billion last year.
'This marks our sixth consecutive quarter of strong adjusted revenue growth and our investments in new benefits, services and digital capabilities continued to generate momentum as we enter the latter part of 2018,' said CEO Stephen Squeri.
American express now expects adjusted earnings to be $7.30 to $7.40 per share, up from prior forecast of $6.90 to $7.30 per share. The company now expects 2018 revenues to be up 9 to 10 percent, compared to previous outlook of at least 9 percent.
Analysts currently estimate earnings of $7.27 per share and revenue growth of 20.40 percent for the full year 2018.
AXP closed Thursday's trading at $102.84, down $1.50 or 1.44% on the NYSE. The stock, however, gained $0.66 or 0.64% in the after-hours trade.
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