NEW YORK, Oct 20, (APP/AFP) – American Express shares shot up 10 percent Thursday after the credit card giant boosted its full-year profit forecast above estimates, a positive sign after recent setbacks. The company, which is facing tougher competition after losing multiyear partnerships with Costco Wholesale and Fidelity Investment, cited underlying revenue growth in the third quarter when the impact of lost Costco business was stripped out. It also pointed to efforts to cut expenses, as well as growth in billings in key international markets that helped to offset a drop in the US side of the business. “Strong operating discipline and credit quality helped to keep us ahead of the 2016 financial outlook that we first provided at the beginning of the year,” American Express chief executive Kenneth Chenault said in a statement. American Express boosted its earnings range for 2016 to $5.90 to $6.00 a share, from $5.40 to $5.70 a share.
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American Express shares surge as it lifts profit forecast
