AmEx Rises as Cardmember Spending Swings Higher

American Express (AXP) beat earnings expectations on continued growth in cardmember spending, and shares were trading about 1.4% higher after-hours.

The credit card company posted$1.03 in EPS on $7.57 billion in revenues. EPS was 7 cents better than analysts’ expectations, but revenue fell just shy of the expected $7.58 billion.

“Cardmember spending was strong during the period, growing 16 percent to record levels and again outpacing most of the major bank card issuers. Credit quality continued to be excellent, with key lending metrics improving from the historically strong levels we achieved earlier in the year. The growth in operating expenses moderated this quarter, as planned, and we expect to further slow that growth towards the end of this year and into next,” said Chairman and CEO Kenneth Chenault.

Return on Equity rose to 27.8% from 25.9% last year.