American Express (NYSE:) Q1 revenues of $11.74 million were higher than expected, in comparison to analysts’ estimates of $11.63 trillion. Also, the company posted Q1 earnings per share of $2.73 which was higher than consensus estimates at $2.39 per shares.

The quarter’s total expenses were $9.06 Billion, an increase of 34% YoY. This was higher than analyst estimates of $8.85 Billion. Financial services firm reported a network volume in excess of 34% YoY, or $350.3 billion. This is higher than the consensus estimate of $344.99 trillion.

AXP expects FY EPS to be in the $9.25- $9.65 range, which is below the $9.72 share. In 2024, the company anticipates revenue growth exceeding 10%. EPS growth will be mid teens by 2024.

“Our strong first-quarter results demonstrated the continued business momentum we’ve achieved over the last several quarters despite the uncertain macro environment… Travel and Entertainment spending was up 121 percent on an FX-adjusted basis over a year ago and essentially reached pre-pandemic levels globally for the first time in March, driven by continued strength in consumer travel,” commented CEO Stephen J. Squeri.

Citi analyst Arren Cyganovich says results were “largely in line as the top line outperformance and higher expenses largely offset” each other. Cyganovich added that “strong top line growth and momentum in signing up new card members supports AXP’s lofty revenue growth expectations over the intermediate term, but we see this as already priced into the shares.”

Goldman Sachs analyst Ryan Nash said AXP delivered “another decent quarter.” He sees any weakness as a good opportunity to buy AXP stock as the company offers “best in class revenue growth and improving card acquisition/card fee growth.”

“Given the fact that it reiterated top and bottom line expectations along with a negative provision, the logical conclusion is that its increasing investments/expenses (likely to get details on the call) unless any reserve builds will be back-end loaded. Shares have outperformed materially YTD on higher spend, re-opening benefits and as a hedge against inflation (+13.5% vs. SPX -8%) and given the fact that there is no “follow through” on the higher EPS (i.e. it’s not increasing guidance) we think there is a chance the stock could be soft today,” Nash added in client memo.

Today, the AXP stock market is slightly lower than it was yesterday.

By Senad Karaahmetovic