American Express (AXP) posted better-than-expected second quarter earnings Friday, and boosted its full-year revenue growth forecast, as a rebound in business and leisure travel trigged record cardmember spending.
American Express said earnings for the three months ending in December came in at $2.57 per share, down 8.2% from the same period last year but firmly ahead of the Street consensus forecast of $2.41 per share. Group revenues, American Express said, rose 31% to $13.4 billion, again beating analysts' forecasts of a $12.5 billion tally.
Cardmember spending was up 30%, American Express said, while expenses rose 31% to $13.4 billion, thanks in part to the group's focus on reward payouts to entice new members, with that tally coming in at 3.2 million.
Looking into the second half of the year, American Express said it now expects group revenues to rise by between 23% and 25%, up from its prior forecast of between 18% and 20%.
“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 CEO Stephen Squeri.
“We have been able to deliver exceptional results while navigating a complex macroeconomic environment because of a number of factors, including the scale and strength of our global customer base, the decisions we made through the pandemic and recovery to support our customers and seize on growth opportunities, and our continued focus on enhancing our value propositions and bringing new customers into the franchise," he added. "As we look ahead, we remain confident in our ability to successfully execute against our long-term growth plan aspirations.”
American Express shares were marked 1.9% higher in early afternoon trading Friday, against a 0.8% decline for the Dow, to change hands $153.06 each, a move that trims the stock's year-to-date decline to around 5%.
