American Express Shares Drop After Q2 Revenue Miss Despite Earnings Beat
Shares of American Express (NYSE: AXP) fell by nearly 6.5% in early trading on Friday after the company reported second-quarter results that beat earnings expectations but missed revenue forecasts. The payment card giant posted $19.64 billion in revenue, just shy of analysts' average estimate of $19.69 billion, while earnings per share came in at $4.53 against a consensus of $4.40. Despite the solid performance and an upward revision to full-year revenue guidance from 9-10% to 10%, investors focused on the slight revenue shortfall. CEO Stephen Squeri highlighted strong member spending growth, but noted that increased operating expenses—driven by investments in growth initiatives like higher fees for its Platinum Card—are offsetting some of the top-line gains. The stock's decline appears to reflect investor concerns over near-term profit pressures despite long-term optimism about Amex’s credit quality and spending trends. With a forward P/E ratio of 15.9, many analysts view this drop as an opportunity for value investors.
Tickers: $AXP
Topics: American Express earnings report finance stock market