American Express reported strong first-quarter profit, surpassing estimates, thanks to its affluent clientele. The company is now looking to expand its appeal among small businesses, with more details expected to be revealed at its upcoming investor day. Despite economic challenges, American Express has maintained stability due to its focus on high-income customers.
William Blair analyst Cristopher Kennedy highlighted the company’s emphasis on premium consumers and small and medium businesses, as well as its continuous efforts to improve its value proposition. American Express has various growth strategies in place to achieve its ambitious revenue goals. Consumer spending in the U.S. increased by 8%, while spending by small and medium enterprises saw a 1% rise.
CEO Stephen Squeri sees potential for stronger spending as small businesses recover from recent setbacks. The company remains optimistic about its revenue growth expectations and profit forecast for the coming years. In the first quarter, profit surged by 31%, exceeding analysts’ predictions, signaling a positive outlook for American Express.
At the upcoming investor day on April 30, American Express plans to elaborate on its strategies for engaging with premium consumers and small businesses in the U.S. Additionally, discussions surrounding revenue opportunities related to Gen Z and millennial customers are expected to be key topics. Despite potential industry changes, such as Capital One Financial’s acquisition of Discover Financial, American Express is confident in its ability to stay focused on executing its successful strategies.
The company’s shares rose by 3.4% following the strong first-quarter results, reflecting investor confidence in American Express’s future prospects. With a solid foundation and strategic plans in place, American Express is positioned for continued success in the credit card industry.