American Express Co. (AmEx), one of the leaders in the US plastic card market, in the second quarter of 2022 received revenue and net income above market expectations and improved its forecast for the year.
The company’s net profit in April-June decreased by 14%, to $1.96 billion, or $2.57 per share, compared with $2.28 billion, or $2.8 per share, for the same period last year.
Revenue increased 31% to $13.4 billion. The increase was driven primarily by a 30% increase in card spending, excluding currency changes, the company said.
Analysts polled by FactSet had, on average, expected earnings of $2.42 per share on revenue of $12.51 billion.
AmEx also separately noted an increase in credit card users of 3.2 million. At the same time, the number of holders of Platinum, Gold and partner credit cards with Delta Air Lines reached record levels.
The company has improved its revenue forecast for the current year. AmEx expects the index to grow by 23-25%, and not by the previously announced 18-20%. At the same time, the forecast for profit is kept at $9.25-9.65 per share.
AmEx shares are up 4.2% in Friday’s pre-sales. The company’s capitalization has decreased by 8.2% since the beginning of the year, while the value of the S&P 500 index has decreased by 16.1% over this period.