Consumer finance companies like American Express Company (AXP) have faced challenges due to the Federal Reserve’s aggressive rate hiking campaign. Conversely, in the last reported quarter, AXP reported record revenue and earnings per share, boosted by the company’s growing millennial and Gen Z customer base.
However, the company also kept its full-year 2023 guidance for revenue growth of 15% to 17% and EPS of $11.00 to $11.40, which could indicate a potential slowdown. Moreover, rising borrowing costs led AXP to substantially increase its provisions for credit losses to $1.2 billion from $410 million a year ago.
