American Express (AXP) CEO Stephen Squeri has a message for investors sending the stock lower on Friday following the company’s third-quarter earnings release: Read the release again.
“We’re not seeing any changes in consumer spending,” Squeri told Yahoo Finance. “We have strong credit quality.”
The CEO also addressed concerns about a business slowdown should a recession materialize.
“If anything changes, we have plans in place to pivot,” Squeri added. “If I didn’t say that you would think I was an idiot. What CEO doesn’t have plans in place for recession? You know, I mean, everybody has, but I had plans in place in 2019. And I was able to pull it off the shelf to navigate the pandemic and that worked out pretty good for us.”
Amex stock fell more than 4% in pre-market trading. Here is how American Express performed compared to Wall Street estimates:
American Express reiterated its full-year sales forecast for 23% to 25% growth. Earnings are now expected to be “above” the top end of Amex’s prior range of $9.25 to $9.65 per share.
And on top of strong consumer spending last quarter, Squeri thinks it will be a good holiday season.
“So my view is I think we’re going to have strong retail spending, and we’ll have strong travel spending through the holiday season,” the CEO said.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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