American Express $AXP Reports Q2 Earnings of $3.25 Per Share, Revenue Hits $16.59 Billion, Guides for 9-11% Revenue Growth

Jul 19, 2024, 11:15 AM

American Express (NYSE: $AXP) reported a strong second-quarter performance, surpassing earnings estimates with a profit of $3.25 per share and revenue of $16.59 billion. The company attributed its success to robust spending by affluent customers on travel, dining, and entertainment. American Express also provided guidance for fiscal year earnings per share, projecting between $13.30 and $13.80, an increase from its previous forecast of $12.65 to $13.15. The firm anticipates revenue growth of 9% to 11% for the fiscal year, adjusting for foreign exchange impacts. In terms of credit metrics, American Express reported a provision for credit losses of $1.3 billion, up from $1.2 billion a year ago, reflecting higher net write-offs. The company noted that card spending has increased nearly 40% since the end of 2021, with its millennial customer base growing significantly. Despite a slight deceleration in travel spending, overall consumer spending remains healthy, with U.S. consumer growth at 6% and international growth at 13%.