Banking, finance, and taxes
Does Amex Deserve More Credit for Q2 Earnings?
Published:
Last Updated:
American Express Co. (NYSE: AXP) released its second-quarter financial results before the markets opened on Friday. The company said that it had $2.07 in earnings per share (EPS) and $10.8 billion in revenue, compared with consensus estimates that called for $2.04 in EPS and $10.82 billion in revenue. The same period of last year reportedly had EPS of $1.84 on $10 billion in revenue.
[in-text-ad]
Second-quarter consolidated total revenues net of interest expense increased 8% to $10.8 billion. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 10%. The increases reflected higher card member spending, loans and card fees.
Consolidated provisions for losses were $861 million, up 7% from $806 million last year. The increase reflected higher net lending write-offs driven by loan growth.
In terms of its segments, Amex reported as follows:
- Global Consumer Services Group reported second-quarter net income of $738 million, down 4% from $770 million a year ago.
- Global Commercial Services reported second-quarter net income of $644 million, up 14% from $564 million a year ago.
- Global Merchant and Network Services reported second-quarter net income of $632 million, up 16% from $543 million a year ago.
- Corporate and Other reported second-quarter net loss of $253 million, unchanged from a year ago.
Steve Squeri, board chair and chief executive, commented:
We continued to enhance the benefits and services we offer and that helped us add 2.9 million new proprietary cards this quarter. Nearly 70% of those new consumer cards we acquired this quarter carry an annual fee – a strong sign that Card Members appreciate and are willing to pay for premium value.
Shares of Amex closed Thursday at $128.40, in a 52-week range of $89.05 to $129.34. Following the announcement, the stock was down marginally in early trading indications Friday.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
