American Express stock (NYSE: AXP) declined in pre-market trading at the time of publishing, even as the credit card company announced Q2 earnings of $2.89 per share. For reference, this was a 12% increase year-over-year and above consensus estimates of $2.81 per share.
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The company delivered its fifth straight quarter of record revenues, net of interest expense, which was up by 12% year-over-year to $15.05 billion. However, this fell short of Street estimates of $15.4 billion.
Stephen J. Squeri, Chairman and CEO, commented, “Card Member spending hit another all-time high, growing 8 percent on an FX-adjusted basis, driven by double-digit growth in U.S. Consumer and International Card Member spending. Travel and Entertainment spending remained strong across customer categories and geographies, growing 14 percent on an FX-adjusted basis.”
Furthermore, the company reaffirmed its FY23 guidance and now expects its revenues to grow in the range of 15% to 17%, while earnings are likely to be between $11 and $11.40 per share.
Analysts remain sidelined on AXP stock with a Hold consensus rating based on five Buys, five Holds, and three Sells.