American Express Company (NYSE:AXP) has reported record second-quarter revenue as card spending reached a quarterly high as members forked out on travel, entertainment and restaurants.
In a statement, the New York-based integrated payments company also reaffirmed its full-year 2023 revenue and earnings per share (EPS) guidance.
However, its shares fell 4% in pre-market trading as the topline growth came in below analysts' expectations.
For the three months to June 30, 2023, Amex reported an 11% rise in total network volumes to $426.6 billion, with total revenues net of interest expenses jumping 12% to $15.1 billion, falling short of the $15.4 billion expected by Wall Street.
Diluted EPS rose 12% to $2.89, beating the $2.80 consensus forecast of 16 analysts according to Zacks Investment Research.
“We delivered our fifth straight quarter of record revenues and achieved record earnings per share this quarter, each growing 12% over the prior year, demonstrating the continued strength of our differentiated business model,” chairman and CEO said Stephen Squeri said.
“Card Member spending hit another all-time high, growing 8% on an FX-adjusted basis, driven by double-digit growth in US Consumer and International Card Member spending.”
Squeri noted that Travel and Entertainment spending remained strong across customer categories and geographies, growing 14% on an FX-adjusted basis.
Reservations on its Resy restaurant platform also reached a quarterly high and bookings through its consumer travel business reached their highest levels since before the Covid-19 pandemic.
Amex said it is sticking to its January guidance for full-year revenue growth of 15% to 17% and EPS of $11.00 to $11.40.
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