American Express staked out an early lead among Dow Jones stocks Friday, after beating Wall Street estimates for its second-quarter results. American Express stock ended up 2% at market close.
The credit card giant reported earnings of $2.57 per share, down 8% from $2.80 per share a year ago. Revenue swept 31% higher, to $13.4 billion, from $10.24 billion in 2021. Analysts were expecting an EPS decline to $2.42 on $12.5 billion of revenue.
"We had an outstanding second quarter, with record levels of revenue and Card Member spending, reflecting the strength of our global customer base and continued momentum across our business," said American Express CEO Stephen Squeri,
American Express Outlook: Guidance Raised
Card member spending rose 30% over the year on an foreign currency-adjusted basis, driven by rebounds in global travel and entertainment purchases. Those categories surpassed pre-pandemic levels for the first time in April, the company said.
AXP set aside $410 million for credit losses for the quarter vs. a benefit of an $866 million reserve release last year.
American Express raised its full-year guidance following the strong quarterly performance. It's now predicting EPS of $9.25 to $9.65 and revenue growth to range from 23% to 25%.
This story will be updated throughout the day.
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