American Express Co. (NYSE: AXP) stock went up 6% after announcing its financial results for the second quarter of 2022. The company recorded a %2 billion net income, or $2.57 per share, in the quarter, less than the $2.3 billion net income, or $2.80 per share, it reported in the same quarter of the previous fiscal year.
Total net of interest consolidate revenues increased 31% to $13.4 billion from the $10.2 billion it recorded in the same quarter of the previous fiscal year. The increase mainly showed growth in the company’s Card Member spending.
Business highlights
American Express recorded $10.4 billion in consolidated expenses, representing an increase of 32% from the $7.9 billion it reported the previous year. Customer engagement costs also went up, mainly because of a 25% rise in higher usage of benefits associated with travel and network volumes.
Based on the performance the company has experienced, it’s raising its full-year revenue forecast from the 18-20% range to the 23-25% range. Furthermore, it’s also going to maintain a $9.25 to $9.65 full-year EPS guidance range.
Global Consumer Services Group recorded a $1.4 billion pre-tax income in the same quarter, which was less than the 41.9 billion it reported a year ago. However, net interest expense revenue increased by 29% to $7.8 billion from the $6 billion it reported in the same quarter of the previous fiscal year.
Management statements
American Express Chief Executive Officer and Chairman, Stephen Squeri, said;
We added 3.2 million new proprietary cards in the quarter, driven by continued strong demand for our premium products. Acquisitions of our U.S. Consumer Platinum, Gold and Delta co-brand Cards each reached all-time highs in the quarter.
The CEO
