New Platinum Card strong demand! American Express Company (AXP.US) third quarter earnings exceed expectations.

American Express Company (AXP.US) exceeded expectations in the third quarter. Last month, the company launched the highly anticipated update to the Platinum credit card. The financial report shows that American Express Company's Q3 revenue was $18.43 billion, a 10.8% increase year-on-year; earnings per share under non-GAAP were $4.14, higher than market expectations. The high-end credit card company reported a billings business volume (the amount spent on American Express Company issued credit cards and other products) of $421 billion for the third quarter. Analysts had previously projected that the company, headquartered in New York, would reach a billings business volume of $415.2 billion. The company's CEO, Steve Squeri, stated in a statement on Friday that the initial demand for the new Platinum card exceeded the company's expectations, with the acquisition of American Platinum card accounts doubling compared to before the update. In an interview, he described this as "the strongest response to a credit card update we have ever seen, and the current level of user engagement has exceeded our expectations." During these three months, American Express Company announced that the annual fee for the Platinum credit card would increase from $695 to $895 and introduced a series of new benefits, including a $400 dining credit at Resy restaurants each year. American Express Company has long faced competition from other credit card companies. JPMorgan Chase announced the update of its Sapphire Reserve card in June, and Citigroup launched a new high-end credit card in July. American Express Company's expenses for this quarter rose to $13.3 billion, slightly higher than analysts' estimate of $13.03 billion. The company attributed this to the increased cost of user engagement due to travel and lifestyle-related benefits. Squeri pointed out that the increase in expenses was lower than the increase in profits. The company also raised the lower end of its full-year revenue guidance, now expecting revenue growth of 9% to 10%, while the market generally expected 8.95%; earnings per share are expected to be between $15.20 and $15.50, with the market generally expecting $15.34. Previously, the company had forecast revenue growth of 8% to 10% and earnings per share of $15 to $15.50. Squeri stated: "There are many concerns in the market about the credit situation, but our credit quality remains excellent."