- The company registered $2.57 per share, or $2B net income.
- Total interest consolidate revenue surged from $10.2B to $13.4B, a 31% increase.
- The firm raises its full-year prediction from 18-20% to 23-25%.
American Express Co. saw its stock gaining 6% after revealing its monetary outcome for Q2 of 2022. Its shares trade under NYSE: AXP ticker.
Meanwhile, the company saw a $2 billion net income ($2.57 per share) in the quarter. That was below the $2.3B net income ($2.80 per share) reported during the same quarter of the previous financial year.
Meanwhile, net interest consolidates revenues surged 31% from $10.2 billion in the previous fiscal year’s quarter to $13.4 billion. The surge primarily reflected growth in the firm’s Card Member spending.
Business Highlights
American Express reported $10.4B in consolidated expenses, indicating a 32% increase from $7.9 billion recorded the previous financial year. Also, customer engagement costs surge, primarily due to the 25% surge in the utilization of benefits of network and travel volumes.
Considering the firm’s performance, American Express is raising its complete-year revenue prediction from 18-20% to 23-25%. Moreover, it will maintain a $9.25 – $9.65 complete-year EPS range.
GCSG (Global Consumer Services Group) registered a $1.4B pre-tax income during the quarter, below the $1.9B recorded a year ago. Nevertheless, net interest expense revenue surged from $6 billion reported the previous financial year to $7.8 billion, a 29% increase.
Management Statements
Stephen Squeri, American Express Chairman and Officer, revealed that the company added new 3.2 million proprietary cards during the quarter, citing massive demand for their premium products. He stated that acquisitions of their US Consumers platinum, Delta, and Golds Cards each attained an ATH over the quarter.
Squeri added that American Express delivered impressive results amidst a complex macroeconomic spectrum due to several factors.
They include the strength and scale of the worldwide client base, decisions made during the pandemic, and revival to support clients and capitalize on growth opportunities, plus continued concentration on improving the firm’s value propositions and attracting new individuals into the franchise.
Stay tuned for the latest financial news.
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