AmEx Raises Revenue Outlook, But Shares Slide 5.6% on EPS Hold
AXP is trading near its 52-week low of $288.34 (12% above the low).
Summary
American Express posted a strong Q2 with record revenue of $19.6B (+10% YoY) and EPS of $4.53 (+11%), driven by higher spending and card fee income. It raised full-year revenue growth guidance to ~10% from 8-10%, but kept EPS guidance at $17.30-$17.90, disappointing investors who expected a lift. Shares fell 5.6% to $321.81, reflecting concern that investment spending will cap earnings despite top-line momentum. The Wall Street Journal noted that American Express investors are hard to please. Credit quality remains resilient with write-off and delinquency rates below pre-pandemic levels, and the company added 3M new cards, with strong millennial/Gen Z uptake.
At the time of this announcement, AXP was trading at $322.65 on NYSE in the Finance sector, with a market capitalization of approximately $220.1B. The 52-week trading range was $288.34 to $387.49. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: ShareCast.