A big quarter for American Express (AXP) has CEO Stephen Squeri staying optimistic into the back half of the year.
“We’re acquiring spending and we see future travel bookings [strong] so I don’t see it [a recession] in my numbers at all,” Squeri told Yahoo Finance.
“It’s really hard for me to get my head around that in quarter three or quarter four we’re going to have a big slowdown,” Squeri said. “But if we learned anything during the pandemic, you kind of go day-to-day, month-to-month, and so as I sit here today, I do not see [a recession].”
Indeed there were no signs of a recession in Amex’s results that hit the wires on Friday. Sales rose 31% from a year ago and spending on cards by Amex members surged by the same amount.
Here is how American Express performed compared to Wall Street estimates:
Shares rose 5% in pre-market trading.
AmEx also raised its full year sales forecast to 23%-25% growth from a view of 18%-20% previously. Earnings are still expected to fall in a range of $9.25-$9.65 per share.
The company saw mixed profits within each business segment, as the company cycled strong comparisons to last year’s COVID-19 recovery and invested in key areas. AmEx also raised provisions for credit losses by $410 million during the quarter, a move we saw from big banks last month.
Results results were paced by the Global Merchant Service segment, where sales rose 32% from a year ago to $1.6 billion. Pre-tax profits increased to $815 million from $527 million a year ago.
Profits at AmEx’s Global Commercial Services segment came in at $817 million from $835 million in 2021. Profits in the Global Consumer Services segment clocked in at $1.4 billion, compared with $1.9 billion a year earlier.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube