Earnings

American Express tops profit estimates on higher card spending; expenses a worry

Getty Images

Credit card issuer American Express beat analysts’ estimates for quarterly profit on Friday, as a healthy U.S. economy fueled higher spending by its customers.

Customer spending rose 7% in the United States, the company’s biggest market, and 5% globally in the second quarter.

U.S. consumer spending increased in May and April. Debit and credit card purchase volumes each rose 6% at Wells Fargo, which reported results last week, underscoring consumer confidence.

Total expenses, however, rose 9.2% as AmEx bolstered its rewards programs to attract more high-spending customers and counter competition from big bank rivals.

Shares of the company were down 1% premarket.

Net income rose to $1.76 billion, or $2.07 per share, in the quarter ended June 30, from $1.62 billion, or $1.84 per share, a year earlier, the company said.

Analysts had expected a profit of $2.04 per share, according to IBES data from Refinitiv.

Total revenue, excluding interest expense, rose 8.4% to $10.84 billion.

Articles You May Like

Top Wall Street analysts tout these energy stocks for attractive dividends
More Americans are living in malls, as developers get creative to help ease the housing crisis
‘Everyone wins except the IRS’ with this legal charitable donation strategy, advisor says
‘Dynamic pricing’ was a top contender for word of the year. Here’s why it got consumers so worked up in 2024
More employers add 401(k) plan match for workers paying student loans

Leave a Reply

Your email address will not be published. Required fields are marked *