Shares of American Express (AXP) are trending higher in pre-market trading at the time of writing after a strong second-quarter performance, driven by robust consumer spending trends. Adjusted earnings per share (EPS) rose 17% year-over-year to $4.08, easily surpassing the consensus estimate of $3.89. Similarly, Q2 revenue jumped 9% year-over-year to $17.86 billion, beating the consensus forecast of $17.7 billion.
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American Express is a global financial services company known for its premium credit and charge cards, which come with a membership rewards program and a focus on providing exclusive travel and lifestyle benefits. CEO Stephen Squeri said, “We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class.”
Here’s How AXP Performed in Q2
AXP’s Card Member Spending reached a quarterly high of $416.3 billion, up 7% year-over-year, while net card fees jumped 20%. In Q2, net card fees totaled $2.48 billion, supported by improving credit performance. Net write-offs declined to 2.0%, down from 2.1% in the prior year period.
The company highlighted strong demand for its premium products and announced major updates coming this fall to its Consumer and Business Platinum Cards in the U.S., as it aims to maintain its leadership position in the premium card segment.
Looking ahead, American Express reaffirmed its full-year fiscal 2025 guidance, with diluted EPS projected between $15.00 and $15.50. Revenue is forecast to grow between 8% and 10% for 2025. For reference, analysts are projecting EPS of $15.24 and revenue growth of 8.14%.
Is AXP a Good Buy Now?
Ahead of the Q2 print, Wall Street remained divided about American Express’ long-term prospects. On TipRanks, AXP stock has a Moderate Buy consensus rating based on seven Buys, 11 Holds, and one Sell rating. Also, the average American Express price target of $331.15 implies 5% upside potential from current levels. Year-to-date, AXP stock has gained 7.1%.
It is worth noting that these ratings were issued before AXP announced its Q2 results and are subject to change once analysts review their recommendations.
