2023-07-21 13:59:44
Credit card company American Express (Amex) reported lower total revenue growth than analysts expected in its second quarter results. This was due to the slowest growth in card usage by customers in about two years.
Spending on Amex’s payment network rose 8%, the slowest growth since the first quarter of 2021. Growth was below analyst expectations. Total revenue also fell short of market expectations.
“January and February of 2022 were more homebound and less active, so Travel & Entertainment had a very strong growth rate last quarter,” said Chief Financial Officer Jeff Campbell.
AMEX CFO Jeff Campbell
Source: Bloomberg
Spending on the Amex payment network rose to $426.6 billion, falling short of the $441.6 billion average forecast by analysts surveyed by Bloomberg.
Travel and entertainment spending increased 14%. Restaurants are currently the largest component of spending categories. American Express cardholders are spending more on dining out than on flights and hotel stays.
April-June earnings increased to $2.17 billion, or $2.89 per share. Earnings exceeded analyst expectations. For the full year, the company still expects earnings of $11 to $11.40 per share and revenue growth of 15% to 17%.
news-rsf-original-reference paywall">Original title:Amex Revenue Misses Estimates as Card Spending Growth Slows (1)(excerpt)
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