No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - American Express shares dropped in early New York trading on Friday after the payments giant kept its full-year earnings guidance unchanged despite reporting another quarter of double-digit revenue growth and raising its revenue outlook.
The company reported second-quarter net income of $3.11bn, up 8% from $2.88bn a year earlier, while diluted earnings per share increased 11% to $4.53 from $4.09.
Total revenues net of interest expense rose 10% year-on-year to a record $19.6bn, driven by higher card member spending, increased card fee income, stronger net interest income and continued customer growth.
Worldwide billed business climbed 9% to $455.8bn, while card member loans increased 10% to $149.4bn and deposits rose 9% to $159.4bn.
American Express added 3m new proprietary cards during the quarter, with millennials and Gen Z accounting for more than 35% of consumer card acquisitions globally. Credit performance also remained resilient, with net write-off and delinquency rates staying below pre-pandemic levels.
Chief executive Stephen Squeri said: "Based on our strong performance, we are raising our full-year revenue growth guidance while maintaining our EPS guidance as we continue to invest behind the significant growth opportunities we see ahead."
Reflecting its strong first-half performance, American Express raised its full-year revenue growth forecast to around 10% from 8-10% previously. However, it maintained its diluted earnings per share guidance at $17.30 to $17.90.
The stock was down 5.6% at $321.81 by 1454 BST.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.