American Express Company (NYSE: AXP) announced first quarter financial results before the market open on Thursday, setting a new quarterly revenue record.

Company overview

• Founded: March 18, 1850
• Headquarters: New York, United States
• Number of employees: 77,300 (December 2022)
• Industry: Banking, financial services
• Key people: Stephen J. Squeri (Chairman & CEO), Jeffrey C. Campbell (Executive VP & CFO)

The results

American Express reported revenue that broke all previous quarterly records at $14.281 billion (up by 16% from the same period last year) vs. $13.981 billion expected.

Earnings per share (EPS) reported at $2.40 per share (down by 12% year-over-year), falling short of analyst estimate of $2.656 per share.

CEO commentary

”Our first-quarter results reflect strong growth in Card Member spending and continued high engagement with our premium products, tracking with the full-year 2023 guidance we provided in January, which we are reaffirming today, for revenue growth of 15 percent to 17 percent and earnings per share of $11.00 to $11.40,”  Stephen J. Squeri, Chairman and CEO of the company said in a press release to investors.

”Revenue grew 22 percent from a year earlier to reach a quarterly record, as Card Member spending rose 16 percent on an FX-adjusted basis. Travel and Entertainment spending was particularly robust, growing 39 percent on an FX-adjusted basis and in March, we saw a record level of reservations booked on our Resy restaurant platform. We also saw an acceleration in spending in our International Card Services segment, which increased 29 percent on an FX-adjusted basis. Spending on Goods and Services around the globe grew 9 percent on an FX-adjusted basis.”

”Our customers have been resilient thus far in the face of slower macroeconomic growth, elevated inflation and higher interest rates, with credit performance remaining best-in-class. That said, we’re mindful of the mixed signals in the external environment.”

”Based on our performance to date and the momentum we see in our business, we remain confident in our ability to achieve our longer-term growth plan aspirations,” Squeri concluded.

The stock was down by around -1% on Thursday at $162.41 per share.

Stock performance

• 1 month: -0.26%
• 3 months: +10.54%
• Year-to-date: +9.87%
• 1 year: -12.60%

American Express price targets

• SVB Securities: $220
• Piper Sandler: $179
• BMO Capital: $197
• Citigroup: $152
• Jefferies: $170

American Express is the 109^th largest company in the world with a market cap of $120.91 billion, according to CompaniesMarketCap.

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Sources: American Express Company, TradingView, MarketWatch, MetaTrader 5, TipRanks, CompaniesMarketCap, Wikipedia