American Express reports stronger-than-expected second-quarter earnings, but its shares decline as the company maintains an unchanged profit outlook. According to the reports, the card issuer posts earnings of $4.53 per share in the quarter, which is up 11% from the same period a year earlier. Revenue growth is supported by higher customer activity, with card member spending rising 9% year over year. Despite the improvement in profit and spending, investors react negatively to guidance that does not change. One outlet notes that the profit outlook remains the same, which contributes to the stock slipping. Overall, the coverage indicates that the company’s near-term financial performance exceeds expectations, but the lack of an upward revision to its earnings forecast limits investor enthusiasm. The contrast between stronger quarterly results and steady guidance drives the downward move in the shares, even as consumer spending on cards continues to grow.
American Express reports stronger profit, but shares fall on steady earnings outlook
American Express reports stronger-than-expected second-quarter earnings, but its shares decline as the company maintains an unchanged profit outlook. According to the reports, the card issuer posts ea...
- American Express reports second-quarter earnings of $4.53 per share, up 11% year over year.
- Card member spending rises 9% year over year in the quarter.
- American Express shares fall despite the profit increase.
- The company keeps its earnings/profit outlook unchanged, according to one report.
- The stock movement is attributed to guidance not improving alongside the stronger earnings.
Stock slide comes despite card spending jumping 9%
4 hours agoThe card company posted second-quarter earnings of $4.53 per share, up 11% from a year ago, as card member spending rose 9%
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