Categories AlphaGraphs, Earnings, Finance, LATEST

Earnings: American Express Q2 results beat on strong card member spending; reaffirms FY19 outlook

Revenues of credit card company American Express (NYSE: AXP) increased in the second quarter and surpassed the estimates, driving the bank’s stock higher early Friday. Earnings also rose from last year and came in above the Street view. The company reaffirmed its full-year earnings and revenue guidance.

American Express (AXP) Q2 results beat on strong card member spending

The New York-based firm reported adjusted earnings of $2.07 per share for the second quarter, up 13% from last year. Earnings also came in above analysts’ forecast. Net income, on a reported basis, advanced to $1.76 billion or $2.07 per share during the three-month period from $1.63 billion or $1.84 per share a year earlier.

There was an 8% growth in consolidated revenues to $10.84 billion, which reflects an increase in cardmember spending and loan volumes. Total cardmember spending, adjusted for foreign exchange, was up 7% year-over-year. The top-line exceeded Wall Street’s projection.

There was an 8% growth in consolidated revenues, which reflects an increase in cardmember spending and loan volumes

Provisions for losses increased 7% to $861 million as net lending write-offs increased amid strong loan growth. There was a 9% increase in consolidated expenses to $7.8 billion, reflecting an uptick in rewards and other customer engagement costs.

“We continued the broad-based momentum throughout our business with the eighth straight quarter of FX-adjusted revenue growth at 8 percent or better. Once again, our performance was driven by a well-balanced mix of spending volumes, lending income and card fee,” said CEO Steve Squeri.”

Also see: American Express Q1 2019 Earnings Call Transcript

Reaffirming the earlier guidance, the management said it expects full-year adjusted earnings to be in the range of $7.85 per share to $8.35 per share and unadjusted earnings between $7.64 per share and $8.14 per share.

Earlier this week, Citigroup (C) posted a 20% increase in second-quarter earnings to $1.95 per share, aided by a 2% rise in revenues. Goldman Sachs (GS) reported lower earnings and revenues for the latest quarter as its main business segments witnessed a slump.

American Express shares gained modestly in the premarket trading Friday after closing the previous session higher. The stock has gained 34% since the beginning of 2019 and 28% in the last twelve months.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top