AmEx profit beats estimates

Credit card issuer American Express Co reported a higher-than-expected quarterly profit that highlighted the health of the US consumer even as fears mount that a manufacturing-led weakness could spread to the broader economy.

US retail sales fell for the first time in seven months in September, adding to concerns after data showed a moderation in job growth and services sector activity in the last month.

New York-based AmEx, for long the preferred choice of affluent Americans for credit cards, however, quelled investor concerns with its ninth straight quarter of foreign exchange adjusted revenue growth of at least 8 percent.

"The trends we saw in the business this quarter continue to be consistent with an economy that continues to grow, albeit at a more modest pace than last year," Chief Executive Officer Steve Squeri said.

US big banks' quarterly results also showed that American consumers are helping to prop up the economy, even as recession fears have led businesses to pull back on spending and borrowing.

"We see a long runway to sustain this performance. In the (fourth quarter), we expect revenue growth to continue with the strong levels we have seen," Chief Financial Officer Jeffrey Campbell told analysts on a post-earnings conference call.

AmEx reaffirmed its 2019 adjusted earnings per share forecast range of $7.85 to $8.35 and said it expects revenue growth of between 8 percent and 10 percent in the fourth quarter.

Net income rose to $1.76 billion, or $2.08 per share, in the quarter ended Sept. 30, from $1.65 billion, or $1.88 per share, a year earlier, the company said.

Analysts had expected a profit of $2.03 per share, according to IBES data from Refinitiv.

The company beat profit estimates for the seventh time in the last nine quarters, according to Refinitiv data.