American Express reported a 10% increase in billed business during the first quarter, its fastest pace in three years, driven by affluent consumers who are less sensitive to macroeconomic headwinds. The company’s premium Platinum Card, which carries an $895 annual fee, saw an acceleration in spending growth and strong retention. Over the past decade, net revenue grew at an 8.8% compound annual rate, while average spend per card member rose 62% between Q1 2016 and the most recent quarter. Management targets mid-teens long-term annualized earnings-per-share growth, and shares trade at a price-to-earnings ratio of 21.4.
American Express CompanyBilled business grew 10% in Q1, fastest in three years, driven by affluent consumers and strong Platinum Card spending.
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