American Express Raises Profit Outlook as Affluent Customers Keep Spending

American Express raised its profit outlook for the year on Friday, a sign that its high-income customers are still opening their wallets for travel, dining and shopping.

The card company said it now expects full-year earnings of $18.30 to $18.60 a share. Its previous forecast was $17.30 to $17.90 a share.

Adjusted earnings for the third quarter were $4.68 a share, beating the consensus estimate of $4.50 and rising 13% from $4.14 a year earlier. Revenue rose 9% to $20.06 billion, just below the $20.12 billion analysts had expected.

Billed business, the amount customers charge on their cards, rose 8% after adjusting for currency effects, reaching $454 billion. Provisions set aside for credit losses fell to $1.0 billion from $1.3 billion a year earlier, a sign that delinquencies remain stable.

Chief Executive Stephen Squeri said the company saw continued strength in billings, new customer additions and member retention, along with excellent credit quality.

The company’s customer base centers on people with high credit scores and money to spare, so its results are not a measure of the American consumer as a whole. They are read instead as one of the earliest looks at discretionary spending among households with room in their budgets, the optional purchases such as travel and eating out.

The large banks that reported earnings earlier this month also said spending was solid across income groups and credit indicators were stable.

Shares of American Express rose about 0.6% in trading before the market opened on Friday. The stock had fallen 12% this year through Thursday’s close.