On Wednesday, American Express (AXP) posted a higher first-quarter profit that exceeded Wall Street estimates, but fell short of revenue forecasts. AXP shares sank about 2% in Thursday morning trading.
AXP shares fell after the credit-card issuer said it earned $1.43 billion during the quarter, up almost 12% from $1.28 billion in the prior-year period. EPS came in at $1.33, topping the $1.30 that analysts had predicted, the Wall Street Journal notes,
However, AXP reported revenue of $8.2 billion, up from $7.89 billion in the year-ago quarter, but slightly below the $8.36 billion expected by analysts.
AXP card holders increased their spending during the first quarter by 7%. That compared to a 9% rise in spending during the prior quarter. American Express CEO Kenneth Chenault noted that the company “continued to see a modest increase in card-member loan balances” during the quarter, despite lingering caution among consumers.
On Wednesday, AXP stock closed at $87.40 per share.
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