American Express Co.’s second quarter earnings surpassed analysts’ estimates, while the company reiterated its full-year profit guidance.
For the three months ending in June, the financial services company reported earnings of $2.07 per share, 3 cents ahead of the Street consensus forecast. The earnings per share was also +12.5% higher from the same period last year.
The company's total revenue increased +8% to $10.8 billion, in line with analysts' estimates. The group's quarterly U.S. billed business grew +7% from the prior year to $209.2 billion, and its global bill increased +1.4% to $102.5 billion.
CEO Steve Squeri indicated that there is a strong loyalty among consumers towards the company. Among the 2.9 million new proprietary cards that the company added this quarter, almost 70% carry an annual fee – something that Squeri thinks is a strong sign that Card Members are willing to pay for premium value.
Looking ahead, American Express said that it will maintain its earlier adjusted earnings per share guidance range of $7.85 to $8.35 per share.