(Reuters) – Third-quarter profit at American Express (AmEx) beat expectations on Friday, as disciplined spending management by the group offset lower commissions collected from merchants.
In pre-market trading on Wall Street, the stock fell 3.8% after climbing about 53% since the start of the year.
AmEx’s remittance revenue, which refers to fees received by the credit card issuer from merchants to facilitate transactions, rose 4% to $8.78 billion in the quarter, below the expectations of analysts who expected $8.85 billion in an LSEG consensus.
The turnover, up 8% over one year, is in line with expectations, at 16.64 billion dollars while analysts were counting on 16.67 billion dollars.
Profit nevertheless rose 2% over one year to reach $2.51 billion, or earnings per share of $3.49, above the $3.28 expected by analysts.
“The excellent preliminary results we are achieving with our product refresh reassure me that we are investing in the right areas,” said Stephen Squeri, chief executive, in a statement.
AmEx raised its annual earnings per share forecast to between $13.75 and $14.05, up from a previous range of $13.30 to $13.80.
(Reporting by Niket Nishant and Pritam Biswas in Bangalore; Noémie naudin; edited by Augustin Turpin)
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