American Express (AXP) shares popped 2.5% after the credit card company posted higher profit in the first three months of 2017 than analysts expected.
Earnings of $1.34 a share compared with the $1.28 average estimate from analysts surveyed by FactSet, while the New York-based company said net income dropped 13% from a year earlier to $1.2 billion.
CEO Kenneth Chenault’s strategic moves to replace revenue lost with the Costco portfolio have led to increases in promotional spending and higher incentive rewards for cardholders, pushing overall expenses up by 1% to $5.5 billion, the company said in a statement.
