By American Express (ticker: AXP) announced its fifth consecutive quarter of record revenue and all-time high earnings per share. The company reported second-quarter earnings of $2.89 per share, surpassing analyst expectations of $2.81. The revenue for the quarter was $15.1 billion, slightly below estimates of $15.4 billion.
Chairman and CEO, Stephen J. Squeri, highlighted the positive performance, stating that card member spending reached another all-time high and grew by 8 percent on an FX-adjusted basis. The growth was primarily driven by double-digit increases in both U.S. Consumer and International Card Member spending. Additionally, millennial and Gen Z consumers were identified as the fastest-growing customer segment, accounting for over 60 percent of new consumer accounts.
Despite the strong numbers, American Express remains cautious about potential debt struggles among cardholders. The company continues to build its reserves for credit losses, with consolidated provisions for credit losses rising to $1.2 billion compared to $1.1 billion in the previous quarter. However, Amex emphasized that credit metrics remained strong in the current quarter.
The company maintained its full-year guidance issued in January, expecting earnings of $11 to $11.40 per share and revenue growth of 15% to 17%.
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