On Wednesday, American Express posted quarterly revenue and earnings that beat Wall Street expectations and increased its full year forecast.
At the same time, the company announced that its CEO Kenneth Chenualt would be replaced by Stephen Squeri effective February 1, 2018.
Earnings per share for American Express ended the quarter at $1.50 versus a Wall Street expectation of $1.48. Revenue reached $8.44 billion, while analysts were expecting the company to generate revenue of $8.28 billion.
American Express raised its guidance for the full year and now is expecting per share earnings of between $5.80 and $5.90. Previously, analysts had forecast earnings per share for the full year of $5.75.
For the same quarter one year ago, AmEx posted $1.20 in earnings per share with revenue reaching $7.77 billion.
CFO at AmEx Jeffery Campbell said the company was pleased to raise both its earnings expectations while finding some incremental investments that are aimed at pushing moderate to long term positive results.
AmEx stock just after results were posted jumped by over 1.5% during afterhours trading, but parred those gains and ended down.
Soon to be CEO Squeri joined in the Wednesday’s conference call saying the company’s next chapter will be building on its momentum gained with a special focus on expanding core products, innovation, enhancing the brand and customer relationships, and entering in partnerships with others in order to remain ahead of the curve.
Last month, AmEx said it would launch a new Blue Delta SkyMiles card that was aimed at mainly millennials who are new travelers. Total spending on engagement reached $3.1 billion during the third quarter, which was up 11% against the same period one year ago.
Campbell added that he is expecting marketing as well as promotion to be significantly down for the complete year in comparison to 2016, as the company realized efficiencies in its marketing spend.
The company has competed with JPMorgan Chase for clients that are willing to pay higher fees. The very popular Chase Sapphire Reserve card has enticed consumers with its large travel credits as well as other perks including access to airport lounges.
However, AmEx has also come under more scrutiny as the United States Supreme Court is examining whether it is violating antitrust law.
Eleven U.S. states filed appeals of lower court rulings that AmEx could stop merchants legally from encouraging their clients to use other rival cards.