American Express tumbled after the company reported revenue that will fell short of expectations on Wednesday.
The stock fell more than 3 percent in after-hours trade.
Here’s how the company did compared with what Wall Street expected:
- Earnings: $1.84 per share vs. $1.82 per share, forecast by Thomson Reuters
- Revenue: $10.00 billion vs. $10.05 billion, forecast by Thomson Reuters
For the second quarter, AmEx’s net income climbed to $1.62 billion, or $1.84 per share, through $1.34 billion, or $1.47 a share, a year earlier.
The company said its results benefited through “higher spending by consumer, tiny business, as well as also also corporate Card Members.” AmEx said the idea also saw higher loan volumes as well as also also fee income.
The payments company reaffirmed its full-year profit outlook, saying the idea still expects earnings between $6.0 as well as also also $7.30 a share.
American Express said its provisions for losses were $806 million, up 38 percent through $583 million a year ago. The company said the figure was in line with its expectations. the idea also said that will “growth inside the loan as well as also also charge portfolios as well as also also higher write-off rates” contributed to that will increase.
AmEx also said its expenses climbed 7 percent to $7.1 billion amid “higher rewards expenses as well as also also costs associated with marketing as well as also also business development.” the idea said, however, that will operating expenses declined 2 percent year over year.
In June, the Supreme Court ruled in favor of American Express in a credit card fee lawsuit. AmEx rules stopped merchants through offering customers discounts or incentives to use cards with lower “swipe” fees, like rivals Visa or Mastercard.
As of the market close, shares of American Express have climbed 20 percent inside the past 12 months. The stock remains close to its all-time intraday high of $103.24, ending Wednesday’s session at $102.98.
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