UPDATE 4-AmEx surpasses profit estimate; small-business strategy in focus

*

U.S. consumer spending jumps, SME growth 'soft'

*

Maintains 2024 revenue and profit forecast

*

Not worried about threat from Capital One-Discover deal - CFO

(Adds international consumer spending detail in paragraph 2, updates shares in last paragraph)

By Mehnaz Yasmin and Niket Nishant

April 19 (Reuters) -

American Express beat expectations for first-quarter profit thanks to strong spending by affluent consumers, although executives underscored the need to refocus on U.S. small business customers, where growth has been more modest recently.

The credit card lender's U.S. consumers spent 8% higher than last year, while international consumer spending climbed 14%. Spending by U.S. small and medium enterprises (SMEs) was up 1%.

"You're seeing some softness in SME. As SME comes back, which we look (at) as an opportunity down the road, that will drive some stronger spending," CEO Stephen Squeri said.

Still, analysts lauded the company's emphasis on high-income clientele, which shielded it from a turbulent economic landscape that has troubled peers.

"Over the years AmEx has narrowed its focus to the premium consumer and small and medium enterprises (SMEs), has expanded its network and remains keenly focused on improving its value proposition," William Blair analyst Cristopher Kennedy said.

The company has "several levers that support its aspirational top-line growth target," he said.

AmEx maintained prior revenue growth expectations of 9% to 11% and a profit forecast of $12.65 to $13.15 a share for 2024.

Profit jumped 31% to $2.44 billion, or $3.33 a share, for the three months ended March 31, sailing past analysts' average expectation of $2.96 a share, according to LSEG data.

INVESTOR DAY EXPECTATIONS

CEO Squeri said AmEx will discuss its strategy for its premium consumer base and small business space in the U.S. at its investor day on April 30.

The company's revenue opportunity tied to its Gen Z and millennial customers will also be among the key topics of interest, William Blair's Kennedy said.

The credit card industry is gearing up for a seismic shift as Capital One Financial works to complete its $35.3 billion acquisition of Discover Financial, which would create the biggest credit card issuer in the U.S.

But AmEx was not worried about any changes in the competitive landscape if the deal goes through, CFO Christophe Le Caillec said.

"We are going to be focused on executing our strategy and our plans because they are working well. It (the deal) is not going to change what we are doing," he added.

New York-based AmEx's shares rose 4.8%, to $224.86. (Reporting by Mehnaz Yasmin and Niket Nishant in Bengaluru; Editing by Pooja Desai)