American Express shares have fallen about 6% year to date, underperforming Visa's 6% gain, Mastercard's flat performance, and the 13% rise in both the Dow Jones Industrial Average and S&P 500. The company reported second-quarter revenue of $19.6 billion, up 10% year over year but slightly below estimates of $19.7 billion, while earnings per share of $4.53 beat the $4.40 consensus. It raised full-year revenue growth guidance to 10% from a prior range of 9% to 10%, and maintained earnings guidance of $17.30 to $17.90 per share, implying about 14% growth at the midpoint. Expenses rose 12% to $14.5 billion, driven by higher spending on customer engagement and acquisition, which CEO Stephen Squeri said is necessary for long-term growth. Only 48% of Wall Street analysts rate the stock a buy, compared with 93% each for Mastercard and Visa, and it trades at 20 times earnings.
American Express CompanyStrong earnings beat and raised revenue guidance despite slight revenue miss.
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