American Express shares are gaining nearly 5% before the opening of the US stock market after the release of a successful quarterly report. The company exceeded analysts' expectations:
Revenue: $13.4 billion vs. expected $12.5 billion, $10.24 billion in Q2 2021
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Create account Try a demo Download mobile app Download mobile appEPS: $2.57 vs. expected $2.42, $2.80 in Q2 2021
Net income: $2 billion vs. expected $2.3 billion in Q2 2021
- American Express reported upbeat revenue mainly due to rising spending by cardholders, whose spending increased nearly 30% year-on-year. The results were driven by the summer season related to travel activity and entertainment. This season marked the first time turnover since the pandemic was exceeded, as reflected in the company's successful report;
- The company shared an optimistic forecast for 2022. American Express expects revenue growth of between 23 and 25 percent and earnings per share in the range of $9.25 to $9.65, well above market expectations;
- The company in the second quarter similarly to other companies in the financial industry like JP Morgan and Wells Fargo banks set aside $410 million in loan losses in anticipation of the default of some customers in an environment of rising interest rates and a projected slowdown.
"We had an excellent second quarter, with record levels of cardholder revenue and spending, reflecting the strength of our global customer base and continued momentum across our business. "The company's results were commented on by CEO Stephen J.Squeri.
American Express (AXP.US) stock chart, W1 interval. The company managed to break through the weakness from the coronavirus pandemic, and as of 2020 is still above the long-term support of the 200-session moving average SMA 200, which settles around $130 per share. Bulls managed to stop the June declines in the company's shares. Source: xStation5
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