American Express CEO Stephen Squeri defended his company’s financial performance despite the credit card giant’s first-quarter earnings falling short of analysts’ expectations. AmEx shares fell by 1.5% during premarket trading.
The company’s earnings per share (EPS) for Q1 were $2.40; a 12% year-on-year decline that fell short of analysts’ $2.65 estimate. Squeri maintained that while AmEx may have not met Wall Street’s expectations, the company did well to reach its own targets.
“So the $2.40 is a good number — the $2.40 beat our plan,” Squeri claimed. He also expressed his belief that AmEx will perform well in the spring and summer despite economic uncertainty, stating, “The economy is definitely bifurcated, and I think at the lower end of the economy you are seeing some stress but we just don’t have that.”
AmEx’s first quarter sales hit $14.3 billion; a 22% year-over-year increase. Its U.S. consumer services segment grew 25% while its commercial business rose 15%. International sales increased by 22%.