American Express ASCOSE FASTECT from loyal costs News ad

American Express Co. NYSE: AXP This is cut above the rest when it comes to a credit and payment card. They serve a richer, conscious status client base, consisting of millennials and generals who like to spend money on travel and entertainment. Despite the fears about the impending recession, American Express announced the first quarter 2025 The results do not show any signs of slowdown.

Even if the recession occurs, the company is buffoiled thanks to its rich client base. The average participant in the American Express Platinum card has a monthly household income of $ 400,000.

This makes the company more immune to economic volatilityNevertheless, this leader of the financial sector offers more than just cards. American Express competes with large credit cards networks Visa Inc. NYSE: V. And Mastercard Inc. NYSE: AField

2025 begins with a reliable beginning for American Express

The first quarter of 2025 provided great comfort to shareholders who were concerned that the company was suffering from a rollback in consumer expenses. The company published Profit per share of $ 3.64Consensus estimates for 17 cents are beaten. Revenue increased by 7.4% compared to last year (YOY) to 16.97 billion dollars. USA, surpassing 16.94 billion dollars. USA.

Consolidated provisions on credit losses fell to $ 1.2 billion. Consolidated expenses increased by 10% to 12.5 billion US dollarsdue to higher variable costs of involving customers. The pure clean discharge rate Q1 was 2.1, which was a flat year. American Express added 3.4 million new cards, and Millennials and Gen-Z clients make up more than 60% of new accounts.

Travel and entertainment metrics continue to grow

Despite the problems with the recession, the rich customer base of the American Express did not show any cracks in armor during the first quarter of 2025. As part of its travel and entertainment business, restaurant, the costs of the restaurant increased by 7%, accommodation increased by 5%, and thensary expenses for airline increased by 3%.

American Express has increased its financial services

Although consumers may believe that the American Express is still a company on credit cards, the reality is such that they have expanded their services. They even have a Hartia bank through their insured FDIC American Express National Bank (Aenb). This allows them to provide banking services, including verification, highly profitable savings accounts, as well as personal and business loans and credit lines.

Their established tourism services include travel agents, insurance and car rental with access to various high -quality hotels and resorts. The rewarding program is also a huge draw that allows customers to earn AMEX points regarding products, services, trips and entertainment.

The company has turned into an energy house of financial services. Pure interest income has increased from $ 3 billion. The United States in the first quarter of 2023 to 4.17 billion dollars. The United States in the first quarter of 2025, which has grown by 11%.

Grows with the company: generation customers production

American Express has a richer and young client base. This leaves a lot of space for growth, and the company offers a lot of updates, while young customers are moving through their career. Access to its many different cards depends on the income of the client, credit points and expenses.

As customers become richer and create their own credit history, they can receive invitations to update to higher premium cards, such as Gold, Platinum or Centurion cards.

These cards are delivered with annual fees and a large number of additional benefits. For example, a gold card has The annual fee for $ 325, but offers 4x points For certain categories of travel and entertainment.

The platinum card has an annual membership fee of 695 US dollars with a much larger number of advantages, for example, 5x points and access to the American Express Global Lounge collection at selected airports. Revenues from the card for cards for the first quarter of 2025 increased by 18% year to 2.3 billion dollars. USA.

Gen-Z millennials and clients provided about 35% of US cards in the first quarter. GEN-X clients accounted for 36%, and Baby-Bummers were 29% of the expenses in the first quarter of 2025.

American Express confirms the instructions of 2025 with a slight mention of tariffs

The company released EPS in 2025 in 2025 is from 15.00 to 15.50 US dollars or adjusted profit growth per share from 12% to 16%. It is expected that revenue will grow by 8% to 10% subject to the macroeconomic environment. Forecasts include a peak unemployment level of 5.7%. It is expected that the trends of expenses in the second quarter will be identical to Q1 2025.

In the conference, only tariffs for one copy were mentioned by phone during a session of questions and answers regarding which segments of their business will be faced with the largest pressure if more cool tariffs are held.

The financial director of Stephen Skvori replied that small enterprises will be the most sensitive, “and so, but small enterprises, I think Small enterprises are those that we would pay much more attentionJust because the costs may not be done – they can be placed in a situation that cannot compete in the market. So, we will continue to look at a small business as this situation develops. ”

Before considering American Express, you will want to hear it.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before a wider market is won … and the American Express was not on the list.

While the American Express currently has a retention rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

Like this article? Share this with a colleague.

The link is copied to the exchange buffer.