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 continued:
We have been able to deliver exceptional results while navigating a complex macroeconomic environment because of a number of factors, including the scale and strength of our global customer base, the decisions we made through the pandemic and recovery to support our customers and seize on growth opportunities, and our continued focus on enhancing our value propositions and bringing new customers into the franchise.
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