If April’s stock market volatility soured American Express (AXP) customers, it didn’t show in the way they spent.
“In the first 10 to 12 days, spending was as strong as last quarter, maybe slightly stronger, and credit conditions remain good,” American Express CEO Stephen Squeri told me on a call Thursday.
American Express reported first-quarter earnings that far exceeded expectations and maintained its full-year outlook.
JPMorgan Chase CEO Jamie Dimon and others have warned that Trump’s tariffs will trigger a U.S. recession, while other companies have withdrawn earnings guidance due to uncertainty.
Stocks have swung wildly this month amid tariff volatility, raising questions about whether households with market exposure can continue to spend at a healthy pace. Those with less market exposure may choose to pull out because they will soon face the brunt of price increases.
Squeri said there was no point in withdrawing expectations because business remained stable.
“It might be easy to pull the guide, but if you know you’re still within the guide, what would you pull?” Squeri added.
American Express shares fell slightly in pre-market trading to $248.57 per share.
Earnings Highlights
Net sales: up 7% year-over-year to $16.97 billion vs. $16.96 billion expected
Credit losses: down 8% year-over-year to $1.2 billion vs. $1.38 billion expected
Diluted EPS: up 9% year-over-year to $3.64 vs. $3.49 expected.
Other things that caught our attention: American Express reaffirms 2025 guidance/stabilizes metrics
2025 net sales expectations: +8% to +10%
2025 diluted EPS expectations: $15.00 to $15.50 vs. $15.23 expected
Q1 2025 charge-off rate: 2.4% vs. 2.3% last year
30-day delinquency rate: 1.3% vs. 1.3% last year
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