American Express Stock Slips on Mixed Q2 Results
American Express (AXP:US) shares traded over 2% lower on Friday after the fintech giant reported softer-than-expected results for the second quarter.
AmEx posted a profit per share of $2.89, ahead of the Street at $2.81. Revenue of $15.05 billion rose 12% year-over-year. Total network volumes jumped 8% to $426.6 billion.
“We delivered our fifth straight quarter of record revenues and achieved record earnings per share this quarter, each growing 12 percent over the prior year, demonstrating the continued strength of our differentiated business model,” said Stephen Squeri, Chairman and Chief Executive Officer.
"We saw continued strong demand for our premium products, with over 70 percent of the new accounts we acquired in the quarter on our fee-based products.”
On a more negative note, discount revenue – a number derived from transactions made with partner merchants that make up a large portion of AmEx’s revenue returns – came in at $8.48B, missing the consensus expectations.
The company reiterated its full-year forecast for revenue growth of between 15% to 17%, and EPS of $11.20.
Congress members Shri Thanedar, Ro Khanna, and Lois Frankel were all trading AmEx shares in 2023. Most notably, Rep. Thanedar sold $50,000 - $100,000 worth of AmEx shares on January 23, when the stock closed at $154.00.
Shares were seen trading in the low $170s on Friday.
