American Express Surpasses Q2 Profit Forecasts with Strong Cardmember Spending
American Express (AmEx) reported a 39% increase in Q2 profits, driven by increased cardmember spending and a higher number of customers carrying a balance. The company's profit reached $3.02 billion, up from $2.17 billion in the same period the previous year. On a per-share basis, AmEx earned $4.15 per share, surpassing analyst forecasts of $3.49 per share.
Excluding one-time gains, the company earned $3.49 per share, higher than the analysts' estimate of $3.24 per share. AmEx also raised its full-year profit forecast to a range of $13.30 to $13.80 per share, up from the previous forecast of $12.65 per share. Additionally, AmEx's provisions for credit losses were $1.3 billion, compared to $1.2 billion the previous year. Last month, AmEx agreed to acquire restaurant-booking platform Tock from Squarespace, aiming to expand its presence in the dining industry.
