American Express Company (NYSE:AXP, ETR:AEC1) shares traded lower before Friday’s opening bell after the credit card issuer’s second quarter revenue missed expectations, overshadowing a profit beat.
Revenue was a quarterly record of $16.3 billion, short of the $16.59 billion expected by Street analysts.
Second quarter earnings of $3 billion or $4.15 per share, up from $2.2 billion or $2.89 per share in the year-ago quarter.
Adjusted earnings per share (EPS) were $3.49, up 21% year-over-year and ahead of estimates of $3.22.
The company also raised its full year EPS guidance to between $13.30 to $13.80 from its earlier forecast of $12.65 to $13.15.
“Based on the strong performance of our core business, we believe we can increase our marketing investments by around 15 percent over last year without using any of the transaction gain, while still delivering exceptional earnings results this year,” American Express CEO Stephen Squeri said in a statement.
It continues to expect revenue growth of 9% to 11%, in line with the guidance it set at the beginning of the year.
Also weighing on American Express stock on Friday was the news it had been fined $5.4 million in Australia for violating credit card rules.
Shares traded down 1.5% at $245.50 pre-market.