NEW YORK, July 19, 2024 (FinanceFlashNews) – Financial services company American Express (AmEx) reported second-quarter earnings and revenue that beat market expectations, driven by its premium customer base which has somewhat insulated the company from weakness in the broader economy.
AmEx’s profit for the three months ended June 30, 2024, rose to $3.02 billion ($2.76 billion euros), or $4.15 per share, from $2.17 billion, or $2.89 per share, in the second quarter of last year.
Adjusted earnings per share came in at $3.49 for the period, compared to analysts’ expectations of $3.26 per share.
AmEx’s revenue for the second quarter rose to $16.33 billion from $14.96 billion a year ago.
The company, however, also increased its credit loss reserves to $1.3 billion from $1.2 billion a year ago.
In June, the company agreed to buy restaurant reservation platform Tock from Squarespace to expand its presence in the dining industry.
AmEx sees the segment as lucrative despite a recent slowdown in spending.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Profit | $3.02 billion (€2.76 billion) | $2.17 billion (€2.89 billion) |
| EPS | $4.15 | $2.89 |
| Adjusted EPS | $3.49 | N/A |
| Revenue | $16.33 billion | $14.96 billion |
| Credit Loss Reserves | $1.3 billion | $1.2 billion |
(1 EUR = 1.093 USD)
Additional notes:
- AmEx’s strong performance was driven by its premium customer base, which is less likely to be affected by economic downturns.
- The company is benefiting from its focus on travel and dining, which are two areas where consumers are still spending money.
- AmEx’s acquisition of Tock is a sign of its confidence in the future of the dining industry.
